Import offers of CRC to Brazil have declined slightly in the last month, with the most recent offers of CRC from China currently at $580/mt, FOB conditions, compared to $590/mt FOB in late October.
In the domestic market, CRC of the 1008 grade is currently sold by distributors at BRL 4,500/mt ($1,381/mt), ex-works, full taxes except IPI, the same price in BRL terms from one month ago, but a decrease of $25/mt in USD terms.
Brazil imported 24,300 mt of CRC in October, 37 percent more than September, at an average FOB price increased from $540/mt to $548/mt. Asia was the main origin, 23,900 mt at $540/mt, of which 21,800 mt from China at $514/mt, while 400 mt was imported from the EU at $971/mt.
A trader in the northeastern state of Piaui, who imported 11,400 mt from China at $511/mt FOB, told SteelOrbis that imports of flat products from distant countries like China or Eastern Europe are just a matter of price, as acquisitions from domestic producers in the Southeast region of Brazil are at a disadvantage, not only due to high domestic prices, but chiefly due to high logistic costs: ocean transportation is not easily available, so most steel transportation relies on trucking.
Meanwhile, Brazil exported in October 61,500 mt of CRC, the highest monthly volume registered in recent years, destined chiefly to the EU (41,800 mt) and to Latin America (17,000 mt).
USD = BRL 3.26 (November 20)
USD = BRL 3.20 (October 23)