A major steel distributor in southeast Brazil told SteelOrbis that rebar prices are set for a price decline by 5-8 percent over the next few days, as a consequence of a dispute for clients in a negative environment for the country's economy, chiefly for the civil construction industry.
He is still selling the CA-50, 10mm thickness product, at BRL3,356/mt ($1,068/mt), CFR, full taxes conditions, stable in BRL since a 12 percent increase from April 1.
"We are keeping with the price, but if the market changes, we will have to change too," he added.
Meanwhile, a medium-sized housing contractor in Rio de Janeiro told SteelOrbis that his last acquisition of rebar, closed one month ago, included the CA-50, 10mm thickness product at BRL3,260/mt ($1,038/mt), while the price for a combination of rebars of the same grade, with thicknesses between 12mm and 25mm, was closed at BRL3,150/mt ($1,003/mt), both prices CFR, full taxes conditions.
The source added that the company was severely affected, although in an indirectly manner, by the stoppage of works related to the oil company Petrobras, currently under investigation on accusations of corruption.
"I never did construction works for Petrobras, but as it is the largest company of Brazil, it has a multiplying effect all over the economy, so my clients are reluctant to close new deals in such an uncertain scenario," he said.
In May, Brazil imported 6,100 mt of rebar from Turkey, at an average FOB price of $546/mt, according to the country's ministry of development, industry and foreign trade, MDIC.
1 US$ = BRL 3.09 (July 2)