Futures offers forUS import base-price hot dipped
galvanized (HDG) coil from
Brazil are still trending volatile, sources note, adding that Brazilian steelmakers’ increased focus on selling HDG and Galvalume coil into their domestic market, as opposed to offering to the
US, that ex-Brazilian offer prices will continue to trend high.
Sources close to SteelOrbis have confirmed that the most recent deals for ex-Brazilian HDG coil from one Brazilian steelmaker were concluded at $700/mt FOB, which is a stark jump from early April, when deals were concluded at $630/mt FOB.
The Brazilian ministry of development, industry and foreign trade (MDIC) has also noted that despite the 14 percent decline in month-on-month export tonnages that were seen between March and April, they expect to see an uptick in interest from
US buyers due to lack of competition from other offshore sources, due to the still-pending
US import HDG trade case investigation.
“
Brazil is still the number one player in the import HDG market,” one Texas-based source said. “The dumping suits have pretty much knocked everyone else out of the market.”
And while Brazilian mills expect to see upticks in ex-
US bookings, despite increases in futures offer prices, Indian HDG producers have been unable to garner interest, despite reductions in ex-India HDG prices.
“It doesn’t matter what the price is,” another source said. “No one wants to take the risk.”
Numerous sources have confirmed the reluctance to book HDG import tons from India relates to the still-pending trade case, in which several Indian HDG producers are still under investigation.