CSN, Gerdau competing to sell rebar at lower prices

Tuesday, 18 August 2015 01:49:30 (GMT+3)   |   Sao Paulo
       

A source told SteelOrbis that local steelmaker Companhia Siderurgica Nacional (CSN) is currently selling the CA-50, 10mm thickness rebar at BRL 2,200-2,250/mt ($632-$647/mt), ex-mill, no taxes included.

“There has been a fight in the domestic market when it comes to steel sales,” a source close to Gerdau said.

Gerdau has been selling the same rebar at BRL 2,332-2,385/mt ($670-$685/mt), ex-mill, no taxes included. In the past, such a price difference used to reach about 4 percent, but now it reaches 6 percent,” another source said, while comparing CSN and Gerdau domestic prices for rebar.

Recently, a Brazilian mill source said steelmakers are in a “fight” to increase rebar sales, as the prospects for the nation’s steel industry remain bearish. The source said Companhia Siderurgica Nacional (CSN) was able to sell its CA-60, 10mm thickness rebar, at BRL 2310/mt ($664/mt) ex-mill, no taxes, to clients across Brazil, according to this source.

“There has been a fight for prices in Brazil,” said another mill source, adding the same trend is also observed in other types of steel, such as structural profiles.

According to a source, Gerdau has a 12 percent margin to negotiate the sale of steel with local distributors. Plus the 12 percent margin, Gerdau usually adds another 3 or 4 percent difference, which makes steel prices slightly increase due to the “brand’s name and quality,” a source commented.

1 US$ = BRL 3.48 (August 17)

 


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