US import HDG prices to resume downward trend

With finished steel prices plummeting in the Far East, it may inevitable that import offer prices in the US slip again. After stabilizing a couple weeks ago, some offers coming from offshore are falling further. In particular, flat rolled steel prices domestically in China are slipping consistently on a week-on-week basis, and the downtrend is showing no signs of slowing. Chinese HDG 0.012"x40.875" G30 prices are between $40.00-$41.00 cwt. ($882-$904/mt or $800-$820/nt) DDP loaded truck in US Gulf ports. While Chinese HDG 0.019" x 48" G90 prices are about $3.00 cwt. ($66/mt or $60/nt) higher, sources tell SteelOrbis that there have been many offers from different mills out of China, with some about $1.00 cwt. ($22/mt or $20/nt) cheaper.

Taiwanese Galvalume 0.019x41.5625 Gr80/AZ55 prices have also fallen and are now between $44.50-$45.50 cwt. ($981-$1,003/mt or $890-$910/nt) DDP loaded truck in US Gulf ports, a $0.50 cwt. ($11/mt or $10/nt) decrease since last week. Expectedly, with import prices dropping and US domestic prices rising, traders have experienced an uptick in inquiry activity in the last few weeks. For the most part, orders placed offshore continue to be for smaller than usual tonnages given the US market's ongoing uncertainty. However, if the price gap grows wider and import lead times begin to move into January, US buyers will likely be more inclined to place more orders offshore.

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