The reference price of hot dipped galvanized products (HDG), for the export from Brazil to South American countries is $1,040/mt today, stable from four weeks ago, CFR conditions, having the G40 grade and 4.75 mm thickness product as reference.
In August, Brazil exported 12,000 mt and imported 50,900 mt of HDG, against respectively 15,000 mt and 48,200 mt in July.
The volume exported in August was the lowest since January, reflecting the shortage of material available for export, as the producers are giving preference to serve the domestic market, were the price premium in relation to a similar imported product, after clearing customs, stands now around 18 percent.
In August, Usiminas exported 7,000 mt of HDG at $1,592/mt to Argentina and 200 mt at $3,837/mt to Colombia, while ArcelorMittal exported 4,500 mt at $1,436/mt to Argentina, CSN exported 200 mt at $1,393/mt to Argentina and traders exported 100 mt at $1,343/mt to Uruguay, all FOB conditions.
The imports were from China (42,800 mt at $808/mt), South Korea (6,600 mt at $1,030/mt), Hong Kong (1,100 mt at $779/mt) and Europe (400 mt at $1,636/mt), all FOB conditions.
In the Brazilian domestic market, HDG is currently sold by producers, in medium to large volumes, to end users or distributors, at BRL 6,300/mt ($1,296/mt), against BRL 6,400/mt four weeks ago, ex-works, no taxes included.
USD = BRL 4.86 (September 18)