Brazil imported 41,100 mt of rebar in April, entirely from Turkey, at an average FOB price of $514/mt, according to the country’s ministry of development industry and foreign trade, MDIC.
The volume went up from March by 180 percent and was the highest figure since August 2014, while the price went down by 5.4 percent from the $544/mt FOB of March.
In spite of being a large producer of rebar and having its mini-mills currently operating at a low production pace, Brazil remains attractive for imported rebar due to the high domestic prices, which according to a distributor in the southeast are currently at BRL3,356/mt ($1,118/mt), CFR full taxes for the CA-50 grade, 10mm thickness product, stable since a 12 percent increase since April 1.
The source mentioned that the local demand for rebar remains low due to the stoppage of works directly or indirectly linked to the oil company Petrobras, currently under investigation on accusations of corruption.
A major trader in Rio de Janeiro told SteelOrbis that the high volume of the April imports of rebar reflects also exchange rate variations during the month, which have opened opportunities for clearing customs at lower cost in BRL, during a few days when the local currency gained value in relation to the $.
Meanwhile, Brazil exported 27,500 mt of rebar in April, 21 percent less than in March, at an average FOB price of $650/mt.
The volume exported in April was entirely destined to Latin American countries, most of which from the Brazilian producers to associated companies abroad, with prices in the $572/mt to $701/mt FOB range, not necessarily linked to market conditions.