The Brazilian steel producers have become flexible with their prices of CRC in the domestic market, a major importer and distributor told SteelOrbis.
According to the source, the average discount offered is in the 3 percent range, which would result in a price of BRL1,940/mt ($785/mt), FOB at the producer’s plant, ex-taxes but including PIS/Cofins levy, for the base commercial grades.
In spite of the price reduction, the importers of CRC are maintaining their program for fresh acquisitions, due to the possibility of gains derived from the still wide difference between international and local prices, with orders already placed for material to be received in January 2015.
According to the county’s ministry of development, industry and foreign trade, MDIC, in September imports of CRC went up from August by 68 percent to 55,800 mt, at an average FOB price 6.3 percent lower at $632/mt, roughly the same for the products of all thicknesses of up to 3mm.
The main origins of the CRC imported were Asia (up 61 percent to 44,400 mt, of which 40,100 mt from China, up 65 percent) and Russia (up 121 percent to 11,000 mt).
$1 = BRL 2.47