Higher ex-Brazil Galvalume prices have done little to stymie orders from US-based buyers. One source close to SteelOrbis has indicated that despite Brazilian steelmakers having increased Galvalume offer prices by 8 percent, foreign clients, including those in the US, are open to booking tons at the new price point.
At current, ex-Brazil Galvalume coil is available to the US at $864/mt, FOB conditions. In comparison, June export cargos from that same country were sold at $725/mt FOB. Brazilian steelmakers exported 12,100 mt of Galvalume coil during that month, most of which were shipped to US-based buyers.
India-based sources however, say orders from US-based buyers have fallen stagnant, with one trader-sources adding that transactions have come to an “almost complete halt.” This trend is still largely tied to uncertainty with US flat rolled steel prices; many market players predict that US domestic HDG and Galvalume prices will soften from current levels, but whether the price dip comes after the summer, or after the first of the year, has yet to be known.
Offer prices to the US from Turkish steelmakers are also being heard; US-based sources have confirmed seeing an uptick in interest in booking tonnages from that country due to the “very attractive” price points. At current, Turkish 0.012”x40.875” G30 coil is available at a US sales price of $43-$44 cwt. ($948-$970/mt or $860-$880/nt), which is more than $6.00 cwt. ($132/mt or $120/nt) below US spot market prices.