With very few fresh deals closed recently, Brazilian producers are negotiating Galvalume for export at $920/mt, FOB conditions, the same reference price for the G40 grade since early February, a local exporter told SteelOrbis.
According to the source, preference remains ascribed to the domestic market, due to more rewarding prices.
The reference price in the Brazilian domestic market today is BRL 5,585/mt ($1,434/mt), ex-works, full taxes except IPI, with the AZ-150 grade as reference and sales by distributors in small volumes. Such price is stable in BRL over the last four weeks, but reduced in USD terms due to exchange rate variations. Larger volumes or sales by the producers are usually entitled to substantial reduction of prices.
In May, Brazil exported 3,300 mt of Galvalume (3,000 mt in April), all by CSN and destined to the US (3,000 mt at $964/mt), to Paraguay (200 mt at $1,015/mt) and Uruguay (100 mt at $1,073/mt), all FOB conditions and price deals probably closed in March. In 2017, Brazil exported in average 11,000 mt of Galvalume per month.
Pushed by the high domestic prices, Brazil imported in April 14,000 mt of Galvalume from China at $763/mt, FOB conditions.
USD = BRL 3.77 (June 21)