A distributor in Rio de Janeiro told SteelOrbis that he is selling CRC of the basic commercial grades at BRL2,835/mt ($706/mt), FOB, full taxes except IPI, an increase of 5 percent in BRL, after a stability of three months.
The source mentioned that the decision to increase the price, despite the low demand dictated by a lackluster domestic economy, does not take into consideration the possibility of an increase of the import tax for most steel products, now dependent on a personal decision by the country’s president, Dilma Roussef, as the studies developed by the government authorities have recommended to maintain the taxes in their current levels, 12 to 14 percent, instead of the suggested 35 percent.
He added that the price increase reflects instead factors such as the reduced offers on most steel products due to reduced domestic production, an increased demand from international markets, the domestic inflation rate and the devaluation of the BRL vis-à-vis the US dollar.
In November, Usiminas exported its CRC in average at $409/mt and CSN at $432/mt, both FOB conditions.
1 USD = BRL 3.99 (January 5)