A major exporter in Brazil told SteelOrbis that the company is maintaining $700/mt, FOB conditions, as the base price for export of hot dip galvanized products (HDG), using the G40 grade product as reference.
He mentioned that the company is pondering an increase around 8 percent for both domestic and export prices, a difficult decision in his view, as a high figure could reduce domestic sales and trigger fresh import deals by consumers, which in turn could expose the company sales to export markets, were prices are less rewarding than domestic prices.
“To complicate the equation, the availability of feedstock to produce HDG is limited, due to a lower steel production in the country, so it would be difficult to serve both domestic and international demands,” he said.
In April, CSN exported its HDG at $561/mt, ArcelorMittal at $570/mt and Usiminas at $480/mt, all FOB conditions, price deals probably closed in February.