In spite of analysts’ forecasts that the prices of flat steel products in the Brazilian domestic market are set to fall in average by 5 percent until the end of the year, Carlos Jorge Loureiro, president of the country’s steel distributors institute INDA believes that the steel producers will not reduce their prices, maintaining the increases achieved earlier this year, 9 percent in average.
“I cannot imagine the steel producers disputing clients by reducing prices, as it would be like shooting their own feet,” he commented to SteelOrbis during the 25th congress of Brazil’s steel institute IABR in Sao Paulo.
According to Loureiro, the distributors are currently selling HRC to their clients, FOB ex-taxes at BRL2,000/mt ($721/mt), while CRC is fetching BRL2,250/mt ($811/mt),for the base commercial grade products.