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 price is now stable for four weeks.
In May, CSN exported 3,700 mt of HDG at $833/mt to the US, 2,200 mt at $907/mt to Argentina, and 1,300 mt at $1,001/mt to Uruguay, while Usiminas exported 3,500 mt at $1,074/mt to Argentina, and ArcelorMittal exported 300 mt at $863/mt also to Argentina.
In the Brazilian domestic market, HDG is sold today by distributors, in small volumes, at BRL 4,680/mt ($1,216/mt), ex-works, full taxes except IPI, having the Z-100, 1.11mm thickness product as reference. The price is stable over the last weeks in BRL, but reduced in USD terms due to exchange rate variations. Larger volumes or direct sales by steel producers are usually entitled to discounts.
Pushed by the high domestic price, Brazil imported in May 30,900 mt of HDG from China at $681/mt, 3,000 mt from South Korea at $841/mt, and 2,200 mt from France at $880/mt, all FOB conditions.
The last offer of HDG received from China was priced at $810/mt, CFR conditions to a port in the south or southeast coast of Brazil.
USD = BRL 3.85 (June 28)
