Brazilian hot dipped galvanized (HDG) export offers are currently at $780/mt, against $800/mt over recent weeks, FOB conditions, having the G40 grade and 4.75mm thickness product as reference.
Sources attribute the decline to producers’ strategy of increasing sales to South American countries as they face competition from other origins such as China.
In the Brazilian domestic market, HDG is sold today by distributors, in small volumes, at BRL 5,222/mt ($1,192/mt), against BRL 5,092/mt two weeks ago, ex-works, full taxes except IPI, having the Z-100, 1.11mm thickness product as reference. The increase reflects the price adjustments announced recently by steel producers. Larger volumes or direct sales by steel producers are usually entitled to significant discounts, with some current deals available at around BRL 4,350/mt ($993/mt), ex works, full taxes except IPI.
The last offer for Brazilian imports of HDG from China was priced at $718/mt, CFR conditions to a port in the south or southeast coast of Brazil, with the Z100/SGCC grade as reference, stable from two weeks ago.
In January, Brazil exported 35,300 mt of HDG while importing 19,300 mt of the product.
USD = BRL 4.38 (February 20)