Brazil imported 33,200 mt of rebar in October, four times the volume of September, at an average price 4 percent lower, $584/mt, according to the country’s ministry of development, industry and foreign trade, MDIC.
Turkey was the main origin of the imports, 31,000 mt, five times the volume of August.
Although Brazil has excess capacity for most steel products in relation to the country’s consumption, imports of rebar are fueled by high domestic prices, consistently above $1,000/mt in CAF terms, in spite of the recent devaluation of the BRL vis-s-vis the US$.
A rebar producer in the country’s northeast told SteelOrbis that the company is still shipping the product (CA-50, 10mm) to clients in the southeast at BRL2,610/mt ($1,018/mt), CAF, ex-taxes, PIS Cofins levies included, stable in BRL in one month, but reduced by 5 percent in US$ terms.
Meanwhile, the Brazilian exports of rebar reached 29,900 mt in October, 30 percent more than in September, at a FOB price 8 percent lower, $697/mt, reflecting chiefly sales by the Brazilian producers to their subsidiaries in South America, not necessarily representative of market conditions.
In October the shipments to South American countries went up by 23 percent to 28,300 mt.