Exports of HRC from Brazil reached 154,300 mt in March, 57 percent more than in February at an average FOB price 8.2 percent higher, $549/mt, according to the country’s ministry of development, industry and foreign trade, MDIC.
A major producer told SteelOrbis that the increase reflects improved competitiveness in terms of local production costs, derived from the devaluation of the local currency, adding that the reduced domestic demand, reflecting the lackluster domestic economy, has also played a key role in moving attentions to external markets.
The source added that his last export deal for HRC was closed at $460/mt for the basic commercial grades.
Exports by ArcelorMittal Tubarao went up by 15 percent to 82,100 mt, while exports by Usiminas increased to 47,700 mt from 1,800 mt in February, and CSN’s exports went down by 2.7 percent to 24,300mt.
The average export prices were: $449/mt FOB for Tubarao, $737/mt FOB for Usiminas and $518/mt FOB for CSN. The main destinations were Europe (64,400 mt), Latin America (52,600 mt) and the US (36,700 mt).
Conversely, the country’s imports of HRC in March went down by 19 percent to 26,000 mt at an average FOB price of $543/mt (reduced by 3.5 percent since February), of which 15,400 mt was from Russia.
A major steel trader in Rio de Janeiro told SteelOrbis that fresh imports of HRC were halted due to the devaluation of the BRL, but a reasonable volume of the product remains stockpiled at the country’s ports, chiefly in the southern and southeastern regions, while importers ponder on the best timing to clear customs, based on the oscillations of the $/BRL rate.
According to a major distributor in the southern region, HRC of the basic commercial grades remain sold in the domestic market at BRL2,230/mt ($731/mt), ex-works, full taxes, except IPI, roughly stable since a 6.7 percent increase in January 2015.
$1 = 3.05BRL