With very few fresh deals closed over the last months, Brazilian producers remain negotiating Galvalume for export at $920/mt, FOB conditions, the same reference price for the G40 grade since early February, a local exporter told SteelOrbis.
According to the source, preference remains ascribed to the domestic market, due to more rewarding prices.
The reference price in the Brazilian domestic market today is BRL 5,860/mt ($1,506/mt), ex-works, full taxes except IPI, with the AZ-150 grade as reference and sales by distributors in small volumes. Such price compares with BRL 5,595/mt over the last weeks, in an increase reflecting the higher prices recently announced by steel producers. Larger volumes or sales made directly by the producers are usually entitled to substantial reduction of prices.
In June, Brazil exported 3,400 mt of Galvalume, roughly the same volume of May and April, of which 3,300 mt at $1,197/mt by CSN to Argentina, and 100 mt at $1,067/mt to Uruguay, both FOB conditions with deals were probably closed in April.
Pushed by the high domestic prices, Brazil imported in June 16,800 mt of Galvalume from China at $772/mt, and 300 mt from South Korea at $769/mt, both FOB conditions.
USD = BRL 3.89 (July 19)