A source from a giant steel producer told SteelOrbis that Brazilian mills are fighting to sell HRC overseas, as buyers from the US expect AD measures to be applied for Brazilian flats.
“If you come to Brazil looking to import CRC, they’re likely to offer you their standard deal for CRC: CFR Europe $430/mt,” a source said. “It’s clear there’s space for negotiation.”
As the US market seems to not be a good option for Brazilian mills, some of them are looking to other additional markets, such as Europe.
Last week, Usiminas said it was looking to export CRC to Europe and more specifically to Germany, the latter the company’s main markets in terms of CRC exports to Europe.
A source said that even despite the lower prices offered by countries like China, some Brazilian mills are trying to secure some orders by reducing the sale price.
“I don’t know how far it goes, because soon they won’t even be able to cover their variable costs,” a Brazilian trader said.
As for the domestic market, sources expect CRC prices to decline.
“What we’ve been hearing is that prices in the domestic market should decline. I’ve been hearing from clients that they were offering discounts for larger volumes, but it seems that everyone is diminishing prices,” the mill source said.
Recent figures from the country’s ministry of development, industry and foreign trade, MDIC, show that Brazil exported 15,600 mt of CRC in June, 89 percent more than in May at an average FOB price 28 percent lower, $477/mt.
A source said that despite the fact that the US market seems to be closed to Brazilian flats, some mills are “exporting CRC at cheaper prices to the US, because there are not much options.”
This source said it is currently looking to buy HDG from Brazil. As for CRC, the mill source said it is buying the product from other countries, as Usiminas prices are still high for the US.