After increasing the export price of Galvalume, Brazilian flats producer CSN increased the export price of its hot dipped galvanized products (HDG) by 8 percent, a major exporter told SteelOrbis.
With the increase, HDG having G40 grade as reference is now negotiated for export at $756/mt, FOB conditions, while for Galvalume the new price is $864/mt FOB.
The source mentioned that with the new price, Brazilian exports could lose competitiveness when compared to international prices, while imports of the product could increase in the short term.
“But the product will remain competitive in other South American countries, even with the higher price, due to favored logistics,” the source said, adding that the focus of the Brazilian HDG producers is in the domestic market, despite the reduced demand derived from the lackluster performance of the local economy.
In May, the country’s exports of HDG declined from April by 47 percent to 27,200 mt, while imports of the product increased by 13 percent to 10,000 mt.