Brazilian producers are negotiating HRC exports with their South American clients in a reference price of $900/mt, stable from two weeks ago, FOB conditions for the basic commercial grades.
In July, Brazil exported 7,300 mt of HRC while importing 24,000 mt of the product, against respectively 15,200 mt and 55,600 mt in June.
The exports of July were destined to the US (5,500 mt at $919/mt) and South America (1,800 mt at $859/mt), FOB conditions. The exporters were Usiminas (6,300 mt at $937/mt) and Gerdau (1,000 mt at $687/mt).
The imports were from Venezuela (15,000 mt at $509/mt), China (5,700 mt at $687/mt) and South Korea (3,200 mt at $561/mt), FOB conditions. Sources mentioned that due to the current shortage of steel products in Venezuela, the HRC registered as imported from that country is probably originated from other countries.
Although reduced in volume from June, the HRC imports in July were among the highest in recent years, still reflecting the high domestic prices, which currently maintain a premium of 30 percent, when compared to similar imported product after clearing customs.
In the Brazilian domestic market, HRC of the basic commercial grades is sold, in medium to high volumes by steel producers, at BRL 5,600/mt ($1,154/mt), stable in BRL from two weeks ago, ex-works, no taxes included.
USD = BRL 4.85 (August 10)