A source from a major distributor in Rio de Janeiro told SteelOrbis that CSN and Usiminas have increased their prices for HRC by 10 percent and 12 percent, respectively.
With the new price, HRC of the basic commercial grades are now traded in the domestic market at an estimated BRL 3,427/mt ($1,017/mt), FOB, full taxes except IPI, equivalent to $763/mt FOB, no taxes included, probably the country’s highest price in nominal terms in recent years.
During 2016, the price of HRC in the Brazilian domestic market has already increased by 35 percent in BRL terms, despite the poor domestic demand, reflecting the lackluster performance of the country’s industrial sector.
With the high domestic prices, the country’s exports of HRC in May were the lowest in recent months, with preference by producers to serve the domestic market, while imports of the product have increased in May by 234 percent from April.
1 USD = BRL 3.40 (June 9)