A Sao Paulo-based source told SteelOrbis that domestic HDG prices have been presenting a difference of up to BRL 220/mt ($57.76/mt) in the latest orders, as demand for the product remains weak and both mills and local distributors look to increase their sales volumes by offering discounts.
“The market is too slow, so mills are making a lot of deals on the case by case basis,” a source said, while referring to the price difference seen in the latest quotes for the product.
The Sao Paulo-based source said mills are selling higher quality HDG domestically at BRL 2,800/mt, ex-mill, full taxes. However, the same source said it is aware of deals closed at lower ranges, which reached as low as BRL 2,580/mt, ex-works, no taxes included.
“Most mills are diminishing steel prices. They’re trying to follow the Chinese market. I know some mills are now looking to 100 mt/month clients, as they look for clients that didn’t interest them before,” said a source.