Brazil imported 11,900 mt of Galvalume and similar products in August, 34 percent less than in July, at an average FOB price of $653/mt. According to the ministry of development, industry and foreign trade, MDIC, the tonnage came almost entirely from China.
A trader told SteelOrbis that the reduction reflects the recent devaluation of the BRL vis-à-vis the $, which in his view reduced the competitiveness of imports, while increasing the competitiveness of exports.
In the domestic market, Galvalume is sold at BRL3,300/mt ($819/mt) FOB, stable in BRL since mid August, although reduced by 13 percent in $ terms over the period.
CSN and ArcelorMittal are licensed to produce Galvalume in Brazil, but the volume produced is not sufficient to meet the domestic demand, so the country is a net importer of the product with 327,000 mt in 2014, almost entirely from China.
1 US$ = BRL 4.11 (September 28)