Brazil long steel producers are still uncertain on whether domestic demand and prices could recover, as the local steel sector still has high inventories and faces difficulties to rise long steel prices.
A source close to steelmaker Sinobras said the company stepped back from a decision of rising rebar prices by 5-6 percent in November.
“We announced a 5-6 percent price increase in the CA-50, 10mm thickness rebar we sell, but a few days later we had to retreat in our decision,” a source, who said Sinobras is currently offering discounts to sell rebar, told SteelOrbis.
Sinobras, a 380,000 mt/year producer located in the northern region of the country, is said to be selling its CA-50, 10mm thickness rebar at CIF BRL 2,390/mt ($636/mt), including the ST tariff.
A source told SteelOrbis Sinobras is currently offering discounts to sell the product until November 27, but will then get rebar prices back to “regular” levels.
“They’re offering discounts to sell rebar. After November 27, the company will sell rebar at CIF BRL 2,460/mt ($655/mt), with the ST tariff included.”
A source said December will be a difficult period for most mills, as some of them start holidays on December 20 and will just get back to work on January 5, 2016. “January is a short period, as most mills are still on holidays. Sinobras’ strategy was to force a sale in November and December, in order to compensate the weak demand they’ll have in late December and in the beginning of January,” a mill source said.
USD = BRL 3.75 (November 25)