A large distributor in south Brazil told SteelOrbis that the company adopted different prices for rebar, depending on the tonnage sold.
Starting this month, the company is selling the CA-50 grade, 10mm thickness product at BRL 3,283/mt ($824/mt) for large tonnages and BRL 3,557/mt ($892/mt), CFR, full taxes conditions, against a previously fixed price of BRL 3,420/mt ($858/mt).
The source was not specific on the tonnages considered as large, but mentioned that “if it could complete the cargo of one truck, it would get a discount.” In Brazil, truck cargos are usually limited to 40mt.
According to the source, the new marketing procedure aims at increasing the volume sold, as during January sales declined substantially when compared to January 2015.
He believes that, for being used in civil construction, rebar sales are influenced by price, as the client can bring forward acquisitions in order to reduce costs, but such rule does not apply to other products, such as wire rod, usually sold to industrial clients.
In December 2015, Brazil exported rebar in average at $520/mt and imported rebar, chiefly from Turkey, at $414/mt, both FOB conditions.
1 USD = BRL 4.00 (February 2)