Brazilian export HDG price maintains long-term stability

Thursday, 08 August 2019 22:44:14 (GMT+3)   |   Sao Paulo
       

A source linked to a Brazilian producer told SteelOrbis that the reference price for the export of hot dipped galvanized products (HDG) to the US is currently $850/mt, FOB conditions, having the G40 grade and 4.75mm thickness product as reference, a reference now stable for six weeks.

The source added that negotiations for sales to the US are suspended, but are set to be resumed in September under the quotas dictated by US Section 232. A second source, linked to another producer, said that $750/mt FOB remains unchanged over eight weeks as the reference price for HDG exports to destinations other than the US.

In the Brazilian domestic market, HDG is sold today by distributors, in small volumes, at BRL 4,945/mt ($1,252/mt), against BRL 5,067/mt two weeks ago, ex-works, full taxes except IPI, having the Z-100, 1.11mm thickness product as reference. Larger volumes or direct sales by steel producers are usually entitled to discounts.

The last offer of HDG received by a Brazilian importer from China was priced at $702/mt, a reference price roughly stable from two weeks ago, CFR conditions to a port in the south or southeast coast of Brazil, with the Z100/SGCC grade as reference.

In July, Brazil exported a mere 1,700 mt of HDG (21,500 mt in June), a decline reflecting chiefly no exports to the US against 16,200 mt in June. The volume of July was almost entirely shipped to South American countries, in average at $930/mt, FOB conditions, different quality grades and price deals probably closed in May.

USD = BRL 3.95 (August 8)


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