A Sao Paulo-based distributor told SteelOrbis that it is offering discounts of up to 3 percent in order to stimulate heavy plate sales.
“A36 heavy plate sales are very weak. We’re offering more discounts, in an effort to increase sales volumes,” said a distributor that buys plates from Usiminas.
“We used to have many big clients. Some of them are broken and some of them are owing us,” the source added.
According to this source, it is still selling heavy plate from Usiminas with a thickness between 30.5-100mm at BRL 2460/mt, ex-works, no taxes included, which is the same price seen in June this year.
“The price remains the same. But in some cases, when orders reach 10 mt or higher, we’re able to offer a 2-3 percent discount,” the source said.
Another distributor in the state of Sao Paulo confirmed the trend of selling plates at lower, discounted prices.
“We try to keep up with the heavy and extra heavy plate prices in the domestic market. If we don’t give a discount, we lose orders. The market declines in steel prices, so we try to keep our prices at a level we can afford,” it said.
At the Brazilian Steel Conference this year in Sao Paulo, sources said mills were offering discounts in order to boost steel sales.
As for price hikes, sources don’t expect Usiminas to increase plate prices.
“We expect to keep our prices. We don’t expect a price increase in heavy plate from Usiminas, unless it happens in a sudden way.”
1 US$ = BRL 3.22 (July 22)