A source from a producer in Brazil told SteelOrbis that the reference price for the export of Galvalume is currently $870/mt, against $850/mt last week, FOB conditions for the AZ-150 grade product.
Exports are still not a priority for Brazilian Galvalume producers, as reduced production has directed sales primarily to the domestic market, where prices could reach the equivalent to $1,000/mt FOB, depending on the volume involved.
In July, Brazil exported 1,600 mt of Galvalume and similar aluminum-zinc coated products, while imported 10,500 mt of the product.
The exports were from CSN to the US (1,300 mt at $907/mt) and by ArcelorMittal to Luxembourg (200 mt at $743/mt), FOB conditions, with different quality grades and price deals probably closed in June. Small volumes were exported by independent producers in the southern state of Rio Grande do Sul to Argentina and Uruguay.
Galvalume imports in July were from China (10,100 mt at $706/mt), New Zealand (300 mt at $719/mt) and South Korea (100 mt at $$1,016/mt).
ArcelorMittal and CSN are the two companies authorized by BIEC to produce Galvalume in Brazil, both having blast furnaces currently idled for revamping. A blast furnace of CSN, idled since June and set for restart in August, is now scheduled to operate again in October only, while a blast furnace at ArcelorMittal Tubarao should restart in 2020.