In spite of the lackluster performance of the country’s economy and reduced demand from end-users of flat steel products, prices of HRC and CRC remain strong in the Brazilian domestic market, a source from a major integrated producer told SteelOrbis.
The source added that the entrance of Gerdau in the HRC market, from the recently inaugurated HRC line of its Ouro Branco plant, did not affect the market so far, but he conceded that demand was affected during the first half of the year by the lackluster performance of sectors such as the automotive and white goods industries, although prices are showing resilience.
He quoted FOB prices for HRC in the BRL 1,960-1,970/mt range ($873-$894/mt), while for CRC prices are in the BRL 2,160-2,170 range ($969-$974/mt). Other sources, meanwhile, indicate that market prices might fall just below these ranges.