Brazilian producers are 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 new price level compares with last week’s level of $810/mt FOB, which was stable since the first half of February 2018.
It is not clear if the increase reflects the tax-free quotas established by US authorities for the import of Brazilian steel products.
In April, Brazil exported 23,800 mt of HDG, 23 percent less than in March, at an average FOB price increased by 3.2 percent to $902/mt. The main exporters were CSN (12,700 mt at $821/mt), Usiminas (7,100 mt at $1,036/mt) and ArcelorMittal (3,700 mt at $896/mt), all FOB conditions with price deals probably closed in February.
The main destinations of the Brazilian HDG in April were the US (12,000 mt), Argentina (10,900 mt) and Mexico (600 mt), while smaller volumes were shipped to South Korea, Uruguay, Japan, China and Paraguay.
In the Brazilian domestic market, HDG is sold today by distributors, in small volumes, at BRL 4,700/mt ($1,274/mt), ex-works, full taxes except IPI, having the Z-100, 1.11mm thickness product as reference. Larger volumes are usually entitled to discounts.
USD = BRL 3.688 (May 17)