A source linked to an exporter told SteelOrbis that the company has increased the price of Galvalume by 8 percent, reaching $864/mt, FOB conditions.
According to the source, the decision was based on the preference to serve the local market, as there is a limited availability of material to serve both domestic and export markets in full, in view of the reduced production pace of the country’s steel producers.
“If fresh export deals are reduced with the new price, we can increase local sales, as the demand is outpacing the local production and even imports of Galvalume are increasing,” he said.
In the Brazilian domestic market, the price of Galvalume is currently estimated at the equivalent to $980/mt, FOB conditions, no taxes included.
In May, Brazil exported 10,900 mt of Galvalume at an average $725/mt, FOB conditions, almost entirely from CSN and destined to clients in the US, with price deals probably closed in March.
Meanwhile, the country imported in May 13,600 mt of the product from China at $513/mt FOB.
In Brazil, CSN and ArcelorMittal are licensed to produce Galvalume by BIEC, but the combined production capacity of the companies is not sufficient to supply the local market with the product.