Domestic prices of HRC are stable in Brazil, after 35 percent in accumulated prices increases since the beginning of the year.
Coils of the basic commercial grades are sold domestically at BRL 3,400/mt, FOB full taxes except IPI, equivalent to $1,035/mt, or $776/mt if considered FOB without taxes.
A source from a major distributor told SteelOrbis that the volume sold during the second quarter of 2016 was very low when compared with the same period of 2015, but sales in July are recovering, adding that the company is optimistic about August: “it seems that the industry players begin to feel confident about the new government and the financial authorities,” he said.
The source mentioned that one of the country’s producers is already considering another price increase around 8 percent for the next month, but in his view it will have negative effects, reducing sales and increasing the competitiveness of the imported product.
1 USD = BRL 3.28 (July 21)