Imports of carbon steel products by Brazil reached 214,000 mt in June, 30 percent less than in May, according to the country’s ministry of development, industry and foreign trade (MDIC).
The main items imported were coated flats (down 16 percent to 93,000 mt), longs (up 9 percent to 85,000 mt), cold rolled coils (down 67 percent to 30,000 mt), and hot rolled coils (down 84 percent to 3,000 mt).
The average FOB price of the products imported were $821/mt for coated flats, $787/mt for longs, $665/mt for cold rolled coils and $693/mt for hot rolled coils.
The main origins of the products were Asia (down 38 percent to 123,000 mt, of which 102,000 mt from China, down 41 percent), Europe (down 24 percent to 70,000 mt), Latin America (up 24 percent to 11,000 mt) and the Caribbean (9,000 mt).
Hovering around 40,000 mt per month until 2005, and limited to a few items not produced in Brazil, the country’s imports of carbon steel products have increased to a peak average of 387,000 mt per month in 2010, reaching stability in the level of 200,000 mt per month since then.
The overvaluation of the local currency, high domestic steel prices and low international steel prices are the main drivers for the current volume of such imports.
The increased volumes of long products imported reflect the booming housing construction activities, while the reduced imports of flats reflect reduced activity in the automotive and home appliances sectors.