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 $880/mt, against $850/mt over the last six weeks, FOB conditions, having the G40 grade and 4.75mm thickness product as reference.
The source added that negotiations for sales to the US are set to be resumed in September, under the quotas dictated by US Section 232.
A second source, linked to another producer, said that the reference price for HDG exports to destinations other than the US has remained unchanged at $750/mt FOB for the last two months.
In the Brazilian domestic market, HDG is sold today by distributors, in small volumes at BRL 4,884/mt ($1,209/mt), against BRL 4,945/mt two weeks ago, 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.
The last offer of HDG received by a Brazilian importer from China was priced at $702/mt, CFR conditions to a port in the south or southeast coast of Brazil, with the Z100/SGCC grade as reference, the same reference price from two weeks ago.
In July, Brazil exported a mere 1,700 mt of HDG (21,500 mt in June), a decline reflecting chiefly no exports to the US against 16,200 mt in June. The volume of July was almost entirely shipped to South American countries, in average at $930/mt, FOB conditions, different quality grades and price deals probably closed in May.
USD = BRL 4.04 (August 22)