Brazilian imports of HRC fetched 36,700 mt in August, 123 percent more than in July, according to the country’s ministry of development, industry and foreign trade MDIC.
The average FOB import price went down by 7.1 percent to $574/mt, reflecting the positive results of importers trying to achieve lower prices from alternative suppliers replacing traditional origins.
The main origins of HRC were Russia (14,500 mt), Venezuela (10,400 mt) and Australia (10,000 mt), being the two latter countries that have not exported HRC to Brazil over the last few years.
Meanwhile, exports from Asian countries, traditional exporters of steel products to Brazil, went down by 90 percent to 1,600 mt, reflecting chiefly imports from China at a mere 476 mt, against 13,000 mt in July.
The imports from Venezuela were particularly received with surprise by analysts, as the country’s main steel producer, Sidor, is operating at a fraction of its potential capacity, leading to a shortage of the product in Venezuela’s domestic market.
A source from a steel major distributor and importer in Sao Paulo has commented to SteelOrbis that it is most likely that the HR coils imported from Venezuela were actually produced in another country, given the scarcity of the product in the Venezuelan market. The source believes that the import was made via Venezuela to benefit from the lower taxes in force among Mercosur countries.
According to sources, the most recent import price for HRC was closed at $590/mt, CFR, while in the Brazilian domestic market HRC remains in the BRL1,600/t to BRL 1,700/mt ($673/mt to $715/mt) range, FOB ex-taxes but including PIS-Cofins, stable in BRL terms.