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 two 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 four 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 5,192/mt ($1,380/mt), ex-works, full taxes except IPI, having the Z-100, 1.11mm thickness product as reference, stable in BRL over the last four weeks. 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, against $725/mt two weeks ago, CFR conditions to a port in the south or southeast coast of Brazil, with the Z100/SGCC grade as reference.
In June, Brazil exported 21,500 mt of HDG, in average at $713/mt, FOB conditions, different quality grades and price deals probably closed in April.
The US was the main destination, 16,200 mt at $817/mt, followed by the EU (4,800 mt at $351/mt) and South America (500 mt at $830/mt), all FOB conditions. Sources note that the price of the HDG shipped to the EU is probably an inter-company deal, and not representative of market conditions.
The exporters were CSN (16,400 mt) and ArcelorMittal (4,900 mt), while a small volume was shipped by independent galvanizing companies.
USD = BRL 3.76 (July 11)
