Brazilian distributors are complaining about the competition with local mills to sell structural profiles, sources told SteelOrbis.
According to a Sao Paulo distributor, wide flange beam margins have been low, and mills benefit from the possibility of selling the product at smaller volumes.
Current FOB prices for the product range from BRL 2440 to 2450/mt (US$983-$988/mt), sources said.
“A mill can sell the product starting from 7 mt. We sell it in higher volumes. So, there’s no way to compete with those small orders”, it said.
The source said current FOB price in the Brazilian domestic market for the steel is BRL 2440, excluding ICMS, PIS and Cofins taxes.
A second source said prices could be up to BRL 2448/mt (US$987/mt). With taxes, the product’s price from a distributor reaches BRL 2950/mt (US$1,189/mt).
“We receive a monthly production of 800-1000 mt, but a final consumer goes to the mill and buys directly from it 10 mt of wide flange beams,” the second source, which is based in Sao Paulo and is part of a distributor group, explained.
“We’ve been working with the product for over five years, and every year the price and margins diminish for us as distributors,” the first source told SteelOrbis.