Brazilian producers remain negotiating hot dipped galvanized products (HDG) for export at $820/mt, FOB conditions, having the G40 grade and 4.75mm thickness product as reference, local exporters told SteelOrbis. The price is now stable for five weeks.
In June, Brazil exported 11,600 mt of HDG, in average at $915/mt, FOB conditions. Usiminas exported 5,600 mt at $985/mt FOB, ArcelorMittal exported 5,000 mt at $823/mt FOB, and CSN exported 700 mt at $948/mt FOB, while smaller tonnages were exported by independent HDG plants. All exports were destined to South America, of which 10,800 mt to Argentina.
In the Brazilian domestic market, HDG is sold today by distributors, in small volumes, at BRL 4,800/mt ($1,244/mt), ex-works, full taxes except IPI, having the Z-100, 1.11mm thickness product as reference. Larger volumes or direct sales by steel producers are usually entitled to discounts.
Pushed by the high domestic price, Brazil imported in June 43,600 mt of HDG, of which 40,600 mt from China at $682/mt and 1,200 mt from France at $850/mt, both CFR conditions.
The last offer of HDG received by a Brazilian importer from China was priced at $805/mt, CFR conditions to a port in the south or southeast coast of Brazil.
USD = BRL 3.86 (July 12)