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 $880/mt, FOB conditions, having the G40 grade and 4.75mm thickness product as reference, stable over the last two weeks.
A second source, linked to another producer, said that $750/mt FOB remains unchanged over 10 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 4,884/mt ($1,197/mt), ex-works, full taxes except IPI, having the Z-100, 1.11mm thickness product as reference, stable in BRL terms 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, roughly stable from the $702/mt of two weeks ago, both CFR conditions to a port in the south or southeast coast of Brazil, with the Z100/SGCC grade as reference.
In August, Brazil exported 28,600 mt of HDG, in average at $813/mt, FOB conditions, with different quality grades and price deals probably closed in June.
CSN was the main exporter, 19,700 mt at $813/mt, destined to the US, while Usiminas exported 6,900 mt at $1,006/mt, and ArcelorMittal exported 1,900 mt at $892/mt, all FOB conditions. Small volumes were also exported by independent galvanizing plants. Other destinations besides the US include Argentina (6,600 mt) and Belgium (2,200 mt), while small volumes were exported to Uruguay, Africa and China.
USD = BRL 4.08 (September 5)