A source from a Brazilian steel producer told SteelOrbis that a 10 percent increase for the export price of rebar did not go into effect as of March 1, as previously expected. According to the source, the increase has been postponed. Within a few weeks, a new announcement will be released with a new effective date and possibly a new increase amount.
Until then, current prices will likely sustain in the range of $440/mt to $470/mt, FOB conditions, for the base of negotiations for export of rebar having the CA50 grade, 10mm thickness product as reference.
Brazilian producers exported 40,000 mt of rebar in January, 22 percent less than in December 2016, at an average price increased by 2.8 percent to $445/mt, FOB conditions, according to the country’s ministry of industry, foreign trade and services, MDIC.
Gerdau was the top exporter, with 37,400 mt at $440/mt, while the Votorantim group exported 1,800 mt at $503/mt, both FOB conditions, with price deals probably closed in November 2016.
South American countries were the main destination, with 24,000 mt at $525/mt FOB, while 15,900 mt was shipped to the Caribbean at $323/mt FOB.