Brazilian producers are negotiating HRC exports with their South American clients in a reference price of $890/mt, against $900/mt two weeks ago, FOB conditions for the basic commercial grades.
In June, Brazil exported 15,200 mt of HRC, in average at $694/mt, while importing 55,600 mt at $638/mt, both FOB conditions.
The exports were all destined to South American countries, shipped by ArcelorMittal (12,400 mt at $685/mt), Gerdau (2,600 mt at $680/mt) and Usiminas (200 mt at $1,461/mt).
The imports were from South Korea (22,000 mt at $597/mt), China (21,800 mt at $704/mt) and Taiwan (11,800 mt at $592/mt), all FOB conditions.
The volume of imports in June was the highest registered in recent years, reflecting high domestic prices that now show a premium of more than 25 percent in relation to the imported product after clearing customs. Speaking recently in a conference with analysts, Carlos Loureiro, president of the Brazilian association of steel distributors INDA, mentioned that such high premium can be considered as an “invitation for imports.”
In the Brazilian domestic market, HRC of the basic commercial grades is sold, in medium to high volumes by steel producers, at BRL 5,580/mt ($1,163/mt), against BRL 5,680/mt two weeks ago, ex-works, no taxes included.
USD = BRL 4.80 (July 13)