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|Imported HDG Sheet Prices Below $800 FOB In Part For US Deals|
Transaction prices of imported hot-dip galvanized (HDG) sheets have fallen in part to below US$800/ton FOB for supplies into the USA, with a low of around US$750/ton FOB, according to information made available in Tokyo. Imported HDG sheet prices for US deals are forecast to decline further if various steelmakers in Asian nations such as China and South Korea enhance their export offensives toward the USA. |
Imported HDG sheet prices for the USA once moved up to a level of US$900/ton FOB in shipments out of China, South Korea, and India at a time when the world's zinc prices were on the rise. Besides, a price level of US$860/ton FOB went through between July and the first half of August. But imported HDG sheet prices for the USA began to show a marked fall in mid-August. Then, part of them has declined to below US$800/ton FOB since the beginning of September.
In the USA, local steelmakers enjoy continued high prices of close to US$900/ton in domestic sales of HDG sheets thanks to an upswing of demand. In contrast, new supplies of imported HDG sheets have become increasingly difficult to negotiate as local traders prefer marking time on new import deals in reaction to enlarged US inventories of steel products on the whole.
As a result, hasty sales of imported HDG sheets into the USA are bound to cause of a fall in prices, market observers believe.
In this connection, there are fears about diverted shipments of unsold HDG sheets into Asia away from the USA, a situation that will affect Asian market conditions for HDG sheets, experts agree. So far, though, there are no signs of diverted inflows into Asia, according to market sources. HDG sheet exports out of India are reported to have shifted from the USA to the Middle East for an alternative destination. Also, It is understood that Chinese steelmakers tend to hold back on aggressive exports of HDG sheets.
Meanwhile, there are signs that South Korean steelmakers are putting sales volume before prices in what they negotiate for exports to the USA of high-grade sheet products such as aluminized sheets besides HDG sheets, market sources point out. Accordingly, it remains to be seen how their export deals will come out.
|last modified : Mon 11 Sep, 2006 [11:24]|