Brazilian domestic demand for structural heavy plates is likely to remain weak, sources told SteelOrbis, adding that prices should remain the stable until the end of the year.
“We expect no change in the price of the product, especially now, with the upcoming presidential election,” a Sao-Paulo-based distributor said.
Sources said the market expects a lower demand for the product by the end of the year, when many mills will stop producing as a result of collective vacations.
“I don’t see a possibility to a reaction until the beginning of 2015,” another source said.
Currently, distributors are reportedly selling ASTM-A36 (2008) structural heavy plates in the Brazilian end-use markets at BRL 2,800/mt (U$1,192/mt), FOB price, excluding taxes.
Compared to the last report of August 22, the price is 6.7 percent lower. At that time, the product was being sold at BRL 2,900/mt (US$1,278/mt) FOB price, excluding taxes.
Usiminas is selling the product at BRL 2,480/mt (U$1,055/mt), another source confirmed. As of August 22, the price of the plate in the domestic market was BRL 2,500/mt (U$1,101/mt).
$1 = BRL 2.34