Brazil exported 12,500 mt of hot dipped galvanized products (HDG) in September, against 62,800 mt in August, in a downtrend reflecting no exports to the US, versus 47,700 mt in August.
The average FOB export price declined by 5.3 percent to $796/mt, pointing to Usiminas exporting 6,000 mt at $717/mt, ArcelorMittal exporting 4,500 mt at $841/mt and CSN exporting 1,700 mt at $825/mt, all FOB conditions with price deals probably closed in July.
The main destinations for Brazilian HDG in September were Latin America (9,400 mt at $894/mt, of which 7,600 mt at $911/mt to Argentina) and the EU (2,900 mt at $404/mt), all FOB conditions.
According to a local exporter, the Brazilian producers are currently negotiating HDG for export in a price range of $810/mt to $830/mt, FOB conditions.
Sources tell SteelOrbis that HDG exports from Brazil continue to suffer from domestic market competition; domestic prices this week reached BRL 4,850/mt ($1,529/mt), ex-works, full taxes except IPI, having the Z-100 grade as reference. The price compares with BRL 4,400/mt ($1,388/mt), same conditions, two weeks ago.
High domestic prices are also pushing demand Brazil’s HDG imports, which have reached 21,900 mt in September, of which 18,800 mt from China at $626/mt, and 1,900 mt from the EU at $935/mt, both FOB conditions.
USD = BRL 3.171 (October 12)
