Brazilian imports of CRC reached 12,400 mt in October against 55,800 mt in September, according to the country’s ministry of development, industry and foreign trade MDIC.
Analysts believe that the reduced volume reflects chiefly material that remains stockpiled at ports, as importers are waiting for a more favorable BRL/US$ ratio to clear customs.
Over the last two months, the BRL has devaluated by 16 percent in relation to the US$, increasing the associated costs of clearing customs and compete in the domestic market, were prices are currently around BRL 2,350/mt, ($900/mt), FOB, ICMS tax and PIS-Cofins levies included, but excluding IPI tax.
A director of Usiminas Cosipa declared that local produced steel is currently priced 10 percent higher than the imported product, comparable to up to 15 percent by the end of October.
The average FOB price of CRC imported in October was $658/mt, 4 percent higher than in September, but a major importer told SteelOrbis that he has recently closed a deal to import material of the base commercial grade at $620/mt, CAF conditions.
The main origins of CRC imported in October were Asia (9,600 mt of which 7,900 mt from China) and Russia (1,900 mt).