A small distributor in Rio de Janeiro told SteelOrbis that since January he is selling HRC in the domestic market at BRL2,040/mt ($536/mt), FOB full taxes conditions, except IPI, for the basic commercial grades.
He added that he will increase such price by 9 percent over the next two weeks, to compensate for the local inflation and at least in part for the devaluation of the price in $ terms, estimated at 30 percent over the period.
“I don’t believe that I will lose clients with the price increase, as I am aware that most distributors are already selling the product at higher prices, despite the reduced demand,” he added.
Meanwhile, a source from a medium-sized distributor in Sao Paulo said that the company is no longer selling HRC in raw form, having its sales dedicated to the auto industry with services of slitting and cut-to-length. He mentioned that the current average price for its sales is BRL3,500/mt ($920/mt), most of it of high grade galvanized products.
A third source, a large distributor in the southern region said that he remains selling the product in the domestic market at BRL2,230/mt ($587/mt) since January, FOB full taxes except IPI.
In September, Brazil exported CRC in average at $491/mt, FOB conditions, a price stable in relation to August.
USD = BRL 3.80 (November 4)