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 $900/mt, FOB conditions, having the G40 grade and 4.75mm thickness product as reference, the same over the last two weeks.
A second source, also linked to a producer, mentioned that $800/mt FOB also remains for two weeks as the reference price for exports to destinations other than the US.
In the Brazilian domestic market, HDG is sold today by distributors, in small volumes, at BRL 5,090/mt ($1,279/mt), ex-works, full taxes except IPI, having the Z-100, 1.11mm thickness product as reference. The price is stable in BRL over the last four weeks, and 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 $725/mt, CFR conditions to a port in the south or southeast coast of Brazil, with the Z100/SGCC grade as reference, stable over the last four weeks.
In April, ArcelorMittal exported 6,100 mt of HDG from Brazil at $763/mt, while Usiminas exported 3,500 mt at $431/mt, both FOB conditions, with different quality grades and price deals probably closed in February. The main destinations were Argentina and Belgium.
A local exporter told SteelOrbis that the low volume of HDG exports from Brazil, during April and March, reflects the lower demand from the US. In January and February, HDG exports from Brazil reached 69,400 mt at 29,900 mt, respectively, against 1,900 mt and 9,600 mt in March and April.
Meanwhile, Brazil imported in April 17,900 mt of HDG from Asia, of which 16,700 mt from China at $696/mt, plus 2,400 mt from the EU at $920/mt, both FOB conditions and different quality grades.
USD = BRL 3.98 (May 30)