Fueled by high domestic prices, Brazil’s imports of HRC and CRC, which went down in June from May by 84 percent to 3,000 mt, and by 67 percent to 30,000 mt, respectively, are set to increase over the next few months, a steel distributor in Sao Paulo told SteelOrbis.
The source said that in addition to coils in stock at the country’s ports, the company is maintaining a program of fresh acquisitions at least until October 2014.
He added that the last deals closed for imports, CFR conditions, were $600/mt for HRC and $660/mt for CRC.
In the Brazilian domestic market, HRC is currently sold by steel producers in the BRL1,600-1,700/mt range ($721-766/mt), while CRC is sold in the BRL1,900-2,000/mt ($856-$902/mt) range.
The premium for the domestic price of the HRC, against the cost of imported similar product after clearing customs, is currently estimated at up to 9 percent.