Brazilian steelmaker Companhia Siderurgica Nacional (CSN) confirmed on Thursday it will increase both HRC and CRC prices by 8 percent, effective on June 1, 2018.
The steelmaker confirmed the comments of commercial executive director Luiz Fernando Martinez, who anticipated the move this week during an earnings call with analysts and investors.
Martinez said CSN will also increase coated steel products, including galvanized, galvalume, pre-painted and metal sheet prices, by 12 percent.
CSN explained in an email sent to SteelOrbis that announced price hikes will cover both the industrial and distributor segments.
A CSN executive told analysts China is exporting HRC at $585/605/mt FOB Taijin.
As a way to remain competitive, CSN said it needs to increase flat steel prices, as the premium as compared to the exported Chinese HRC was between zero to minus 5 percent.
Brazilian domestic HRC steel prices (sold by distributors) reported on May 17 were BRL 3,700/mt ($1,003/mt), ex-works, full takes except IPI. The last reported domestic CRC prices sold by distributors in late February were BRL 3,920/mt ($1,210/mt), ex-works, full taxes except IPI.
USD = BRL 3.69 (May 17)
USD = BRL 3.24 (Feb 26)