Brazil's domestic rebar prices (10 mm) are ranging from BRL 1600-1650/mt ex-works ($497-512/mt), excluding taxes.
In December, service centers received information of a possible mid-January 2017 mill price increase, but according to market sources, adoption of a price increase- if announced- will be difficult due to seasonally low sales volumes in January and recent reports of weaker international steel price movements.
To place in perspective, rebar prices for (10 mm) were at 1650-1750/mt ex-works ($514-545/mt), excluding taxes, in mid-October 2016.
Brazil’s economy struggled to recover through 2016. The Brazilian economy contracted 2.9 percent year-on-year in the third quarter of 2016, following a downwardly revised 3.6 percent decrease in the previous period but better than market expectations of a 3.2 percent contraction. The third quarter was the 10th straight quarter of contraction, hurt by domestic demand and a slowdown in exports. Brazil’s GDP from construction reached 5 year lows through 2016.
The economy should exit recession this year, after falling an estimated 3.4 percent in 2016. However, the pace of recovery is likely to be slow amid austerity measures and modest external conditions. Analysts presently forecast GDP growth at 0.8 percent in 2017.
$1 = BRL 3.22, 01/04/2017
$1 = BRL 3.21, 10/16/2016
$1 = BRL 3.21, 10/16/2016