Brazil imported 21,600 mt of CRC in November, a 12 percent increase from October, at an average FOB price 6.1 percent higher, at $505/mt, according to the country’s ministry of industry, foreign trade and services, MDIC.
The main origins were China (19,700 mt at $488/mt) and South Korea (1,600 mt at $664/mt), both FOB conditions.
A severe reduction in domestic sales has forced local steel producers to reduce production and increase domestic prices, in an attempt to cope with increased costs and maintain profitability. The result has been an unexpected increase of imports, as steel consumers are trying to find alternative suppliers that could offer lower prices.
Domestic Brazilian CRC prices are reaching the equivalent of $1,300/mt, ex-works, full taxes, a local trader told SteelOrbis.