A source linked to a Brazilian producer told SteelOrbis that the reference price for the export of hot dipped galvanized products (HDG) remains at $700/mt, FOB conditions, having the G40 grade and 4.75mm thickness product as reference, which is consistent with price points offered in the past few months.
Reversing previous expectations of low volumes, Brazil exported in June 63,300 mt of HDG, which reflects the highest monthly volume of HDG exports in recent years.
The increase from the mere 600 mt exported in May, reflects 44,000 mt in HDG coil exported by CSN to the US (at $749/mt) and 13,100 mt exported by Usiminas to the US (at $639/mt), both FOB conditions and different quality grades. South American countries were the destination of 6,200 mt (at $710/mt) under the same conditions.
In total, CSN exported 44,600 mt of HDG coil (at an average price of $749/mt), Usiminas exported 18,200 mt (at an average price of $655/mt) and ArcelorMittal exported 300 mt (at an average price of $772/mt) while independent producers exported 200 mt (at an average price of $772/mt.)
Meanwhile, Brazil imported in June 23,600 mt of HDG from China at $577/mt and 3,700 mt from South Korea at $867/mt, both FOB conditions and different quality grades.
The last offer of HDG received from China was priced at $680/mt, against $673/mt two weeks ago, CFR conditions for a port in the South or Southeastern coast of Brazil, with reference to the Z100/SGCC grade.
In the Brazilian domestic market, HDG is currently sold by producers at BRL 3,851/mt ($727/mt), comparable to BRL 3,597/mt two weeks ago, ex-works, no taxes included.
USD = BRL 5.30 (July 7)
