A source from a Brazilian producer told SteelOrbis that his last deal to export Galvalume to the US was closed at $1,200/mt, CFR conditions, which translates into $1,150/mt FOB conditions, considering logistics costs estimated at $50/mt. The price compares with a previous long-term stability reference of $920/mt FOB conditions.
Galvalume exports remain as a marginal activity for the Brazilian producers, due to the more rewarding prices achieved in the domestic market, a factor currently coupled with reduced production at CSN and ArcelorMittal, the local companies authorized by the Brazilian government to produce Galvalume.
In July, the Brazilian exports of Galvalume were limited to 600 mt, destined to South American countries and priced in average at $1,030/mt, FOB conditions.
The reference price in the Brazilian domestic market today is BRL 5,700/mt ($1,368/mt), against BRL 5,900/mt two weeks ago, ex-works, full taxes except IPI, with the AZ-150 grade as reference and sales by distributors in small volumes. Larger volumes or sales made directly by the producers are usually entitled to substantial reduction of prices.
USD = BRL 4.17 (August 30)
