A source from a Brazilian exporter told SteelOrbis that local HDG producers are giving preference to supply the local domestic market, where prices are more rewarding than in the international market.
According to the source, lower domestic production after four large blast furnaces were idled is generating scarcity of some products, previously expected under the strategy adopted to maintain positive margins.
“We will export if the export price covers the margin ascribed by the domestic price, and if there is a surplus to export,” the source said, adding that the company is pondering on price increases for HDG products, domestic and exports.
He mentioned that his last export deal for HDG of the G40 grade was closed at $700/mt, FOB conditions.