A distributor in Rio de Janeiro told SteelOrbis that he is now selling heavy plates at BRL3,045/mt ($776/mt), FOB, full taxes except IPI, a 5 percent increase in BRL, following stability for three months.
According to the source, the new price refers to plates of the shipbuilding grade, with more than 10mm in thickness, and has no links to high levels of import tax for steel products, under evaluation by government authorities but not entering in force so far.
“The increase reflects the domestic inflation and the devaluation of the BRL vis-à-vis the US currency,” he said, adding that he is not even sure if high import taxes for steel imports will be implemented, given the complaints published in the press by the country’s consumers of steel products.
Steel producers have asked the government for higher import taxes for steel products, as a protection from steel imports at dumped prices, chiefly from China, but the local steel consumers complain that the current steel imports are not relevant in volume, while higher import taxes will serve only to fuel price increases by the domestic producers.
The source said that his sales of flat products have virtually stopped in December, but he expects the resumption of sales, along with the country’s economic activity after the first week of January.
In November, Brazil exported 3,900 mt of heavy plates, in average at $327/mt, FOB conditions, with a wide variety of prices according to destination: $184/mt to Vietnam, $430/mt to the US, $456/mt to the EU and $693/mt to South American countries, all FOB conditions.
1 USD = BRL 3.87 (December 29)