Brazilian producers are negotiating hot dipped galvanized products (HDG) for export in a range of $820/mt to $830/mt, FOB conditions, having the G40 grade and 4.75mm thickness product as reference, two local exporters told SteelOrbis. The price is stable over two weeks.
In July, Brazil exported 10,000 mt of HDG, in average at $815/mt, FOB conditions. ArcelorMittal exported 8,200 mt at $792/mt, CSN exported 1,300 mt at $852/mt, and Usiminas exported 300 mt at $1,200/mt, all FOB conditions and price deals probably closed in May. A small volume was exported by independent galvanizing plants. South American countries were the main destination (8,600 mt), followed by Mexico (1,200 mt), while small volumes were shipped to Asian countries.
In the Brazilian domestic market, HDG is sold today by distributors, in small volumes, at BRL 5,180/mt ($1,363/mt), against BRL 5,000/mt last week, 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 such high domestic price, Brazil imported in July 29,600 mt of HDG, of which 24,300 mt from China at $688/mt, 1,900 mt from France at $855/mt, and 1,800 mt from South Korea at $899/mt, all FOB conditions.
The last offer of HDG received by a Brazilian importer from China was priced at $785/mt, CFR conditions to a port in the south or southeast coast of Brazil.
USD = BRL 3.80 (August 9)