A distributor in Rio de Janeiro told SteelOrbis that he decided to bring forward the increase of the price of heavy plates, previously scheduled for February 15.
He added that instead of 10 percent, as planned, the increase was limited to 8 percent, covering the product with more than 10mm in thickness.
With the 8 percent increase, the price of the shipbuilding grade product is now BRL 3,289/mt ($850/mt), FOB, full taxes except IPI.
According to the source, the decision to increase the price is justified not only to cover the increase of the price decided by Usiminas, but also due to the scarcity of the product in the market, as Usiminas reduced the production of plates, following the suspension of crude steel production at its Cubatao plant, in the state of Sao Paulo.
In December, Usiminas exported plates at $461/mt to the US and at $701/mt to South American countries, both FOB conditions.
1 USD = BRL 3.89 (February 4)