As traders say there have been trial tons in the US for offshore HDG, a Brazilian source, which currently works at one of the world’s largest steel producers, told SteelOrbis it is “close” to a deal in Brazil to buy HDG.
Despite trader sources saying supply is outpacing demand, a source told SteelOrbis prices for Brazilian HDG are now looking as an interesting option for the US import market.
“I’m close to buying HDG from Brazil, but I’m yet to reach a deal,” the source said.
According to this source, it has received a $530/mt CFR import equivalent base offer to buy Brazilian HDG. “Prices could go a bit lower, as we mills offer extras for thickness, for coating and for the quality of the material,” he added.
Despite declining to name the mill, which made the best offer, the mill source said Brazil’s Companhia Siderurgica Nacional (CSN) currently has the most competitive prices.
“CSN has the most competitive prices for HDG, because their own company in the US resells the product made overseas, so it’s a win-win situation for both the Brazilian producer and for the US subsidiary,” he commented.
The source said the $530/mt CFR offer is for “high orders”, but didn’t disclose how much HDG it is looking to import.
Recently, a Sao Paulo-based source said mills are selling higher quality HDG domestically at BRL 2,800/mt ($711/mt), ex-mill, full taxes. However, the same source said it is aware of deals closed at lower ranges, which reached as low as BRL 2,580/mt ($655/mt), ex-works, no taxes included.
1 US$ = BRL 3.94 (October 2)