HRC of the basic commercial grades are currently sold in Brazil at the equivalent to $776/mt, FOB conditions, following a series of price increases that has reached around 35 percent since the beginning of the year.
There are even plans, at least from one producer, to increase prices by an additional 8 percent, but such plans could be affected if the US International Trade Commission (ITC) includes HRC in the countervailing duties that have been recently applied to various US flat steel imports from Brazil and other countries.
“If the flow of HRC to the US is suspended, there will be a surplus, at least in a first stage, which will have to be diverted to other destinations,” said a source from a Brazilian flats producer, adding that if such surplus moves to the domestic market, the local prices will certainly decrease.
The US ITC has recommended countervailing duties on exports of CRC to the US by the Brazilian producers CSN and Usiminas; results in the HRC case are expected by the end of this week.