Pricing war begins in Brazilian domestic steel market

Thursday, 26 August 2010 02:47:32 (GMT+3)   |  
Prices for Brazilian flat-rolled steel have dropped by as much as 20 percent for products delivered in the second half of 2010, according to a Wednesday report by Dow Jones News Wires.  

The challenge, according to sources, was an influx of inexpensive offshore imports.  And with Brazilian mills attempting to raise prices by approximately 15 percent earlier this year, The Dow reports imported steel was being sold at prices 25 percent lower than were domestic offerings.

With revised domestic pricing, however, imports are now reported as being only $100 less than steel produced in Brazil, leaving many traders less willing to take a risk on futures.


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