US buyers continue to express increased interest in ex-Brazil bookings of both
US import hot dipped galvanized (HDG) and Galvalume coil, but decreases in steel production in that country may lead to higher offer prices.
One source close to SteelOrbis notes that four Brazilian blast furnaces are idled, which is a record in recent years.
Although current ex-Brazilian pricing to the
US for 0.019’ x41.5625’ Gr80/AZ55 Galvalume coil continues to be heard in the approximate range of $37.00-$37.50 cwt. ($816-$827/mt or $740-$750/nt), DDP loaded truck in
US Gulf coast ports, sources note that mills are wanting to increase prices to
US buyers by approximately $0.25-$0.50 cwt. ($5-11/mt or $5-10/nt).
The same holds true for ex-Brazilian base price HDG futures offer prices. Prices from at least one mill are still being heard in the approximate range of $31.00-$32.00 cwt. ($683-$705/mt or $620-$640/nt), DDP loaded truck in
US Gulf coast ports, but those prices are likely to firm by approximately $0.25-$0.50 cwt. ($5-11/mt or $5-10/nt) as well, in the near future.
It is also worth noting that due to recent price increases within the
US domestic flat rolled steel market, should Brazilian futures offer prices indeed firm by the desired range, they will still be trending approximately $3.00 cwt. ($66/mt or $60/nt) below the most commonly heard
US domestic spot market transaction range.