In the Brazilian domestic market, CRC of the 1008 grade is currently sold by distributors at BRL 4,080/mt ($1,275/mt), ex-works, full taxes except IPI, against BRL 3,850/mt one month ago.
Meanwhile, the most recent import offers of Chinese CRC received by Brazilian importers is in the range of $615/mt, FOB conditions., compared to $630/mt FOB one month ago.
Brazil imported 6,200 mt of CRC in December, 15 percent less than in November, according to the country’s ministry of industry, foreign trade and services, MDIC. China was the main origin (5,300 mt at $504/mt), while 700 mt at $781/mt were imported from the EU, both FOB conditions.
A trader in the northern state of Piaui, who imported 4,300 mt from China in December at $491/mt FOB, told SteelOrbis that imports from China are usually more attractive than acquisitions from domestic steel producers in the southeast due to logistics constraints, as domestic transportation involves large distances in trucks and ocean transportation is not available most of the time.
Additionally, Brazil exported in December 50,200 mt of CRC, 15 percent more than in November, destined chiefly to the EU (45,300 mt at $578/mt) and to South American countries (4,400 mt at $820/mt).
USD = BRL 3.20 (January 15).