Price declines for Brazilian HDG exports to the US

Thursday, 03 October 2019 21:44:59 (GMT+3)   |   Sao Paulo

A source linked to a Brazilian producer told SteelOrbis that the reference price for the export of hot dipped galvanized products (HDG) to the US is currently $850/mt, against $880/mt two weeks ago, FOB conditions, having the G40 grade and 4.75mm thickness product as reference.

A second source, linked to another producer, said that $750/mt FOB remains unchanged over the last weeks as the reference price for HDG exports to destinations other than the US.

In the Brazilian domestic market, HDG is sold today by distributors, in small volumes, at BRL 4,819/mt ($1,167/mt), ex-works, full taxes except IPI, having the Z-100, 1.11mm thickness product as reference, stable in BRL from two weeks ago. Larger volumes or direct sales by steel producers are usually entitled to discounts.

The last offer of HDG received by a Brazilian importer from China was priced at $700/mt, CFR conditions to a port in the south or southeast coast of Brazil, with the Z100/SGCC grade as reference, the same price over the last two weeks.

In September, Brazil exported 10,900 mt of HDG, of which 5,900 mt to South American countries, in average at $959/mt, and 5,000 mt to the US at $722/mt, both FOB conditions, with different quality grades and price deals probably closed in July. Usiminas exported 9,000 mt, ArcelorMittal exported 1,500 mt and CSN exported 400 mt of HDG during the month.

Meanwhile, Brazil imported in September 19,100 mt of HDG, of which 16,200 mt from China at $636/mt and 1,400 mt from Australia, also at $636/mt, both FOB conditions and different quality grades. Smaller volumes were imported from countries in Asia and in the EU.

USD = BRL 4.13 (October 3)

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