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, stable over the last four weeks.
The source added that negotiations for sales to the US are currently suspended, but are set to resume 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 six 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 5,067/mt ($1,333/mt), against BRL 5,192/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 $700/mt, CFR conditions to a port in the south or southeast coast of Brazil, with the Z100/SGCC grade as reference, reflecting a stable trend from two weeks ago.
In June, Brazil exported 16,200 mt of HDG to the US at $817/mt, 4,800 mt to the EU at $351/mt, and 500 mt to South America at $830/mt. The price of the HDG shipped by ArcelorMittal to Belgium and Luxembourg is probably an inter-company deal, not necessarily representative of market conditions.
USD = BRL 3.80 (July 25)