The most recent numbers from Brazil’s ministry of development, industry and foreign trade, MDIC, show that the country’s exports of hot dipped galvanized products (HDG) declined from 31,300 mt in July to 10,300 mt in August, at an average FOB price reduced by 14.7 percent to $590/mt.
The reduced volume reflects chiefly August exports of 2,000 mt by the local producer CSN to the US, against 25,400 mt in July.
A market source had previously informed SteelOrbis that Brazilian producers are ascribing preference to serve the more profitable domestic market.
The main destinations of August were the US (5,800 mt) and South American countries (4,600 mt).
Domestic demand for HDG products is low, as with most steel products, but Brazilian steel producers have implemented production cuts to maintain the supply/demand balance and sustain domestic prices, which remain higher than international prices.
According to the source, the last exports of HDG products were closed in average at $756/mt, FOB conditions, having the G40 grade as reference. Such price is stable since early July 2016.
In August, CSN exported HDG in average at $699/mt, Usiminas at $550/mt and ArcelorMittal at $731/mt, all FOB conditions, with price deals probably closed in June.
In the Brazilian domestic market, HDG prices reportedly exceed the equivalent to $1,100/mt ex-works conditions, no taxes included.
Meanwhile, Brazil imported in August 7,200 mt of HDG from China at $534/mt, FOB conditions.