The reference price for the export of Galvalume is currently $860/mt, CFR for sales to countries in Europe, AZ-150 grade product, against $810/mt two weeks ago. Sources tell SteelOrbis the increase reflects a higher FOB price, as the product is currently scarce in Brazil, with imports of Galvalume exceeding exports.
CSN and ArcelorMittal are the sole steel companies authorized by BIEC to produce Galvalume in Brazil. Under normal conditions of the country’s economy, their combined output is insufficient to meet domestic demand, a factor currently coupled with the reduced production derived from the temporary closure of blast furnaces.
In November, Brazil exported a mere 500 mt of Galvalume, while importing 11,500 mt of the product, of which 11,400 mt from China at $692/mt, FOB conditions.
The last offer of Galvalume received by a Brazilian importer from China was priced at $770/mt, CFR conditions to a port in the south or southeastern coast, against $755/mt CFR two weeks ago.