Steel distributors in Sao Paulo are negotiating HRC for the domestic market in small volumes at BRL 3,823/mt ($917/mt), against BRL3,677/mt two weeks ago, reflecting part of an increase recently announced by local producers of flat steel products.
The price refers to the 1008/1012 grades, 3.00mm thickness product, delivered to customer, full taxes except IPI conditions. It is usually entitled to significant discounts in case of large volumes or direct acquisition from producers, with discounts currently estimated at up to 13 percent.
As for import HRC, the last offer of HRC received by Brazilian importers from China was priced at $572/mt, against $570/mt three weeks ago, both CFR conditions to ports in the Brazilian south or southeastern coast, having the A36/Q235 grade product as reference.
In January, Brazil imported 10,700 mt of HRC, against 4,300 mt in December. The increase is due chiefly to imports from Russia of 7,600 mt, by a trader in the northeastern state of Piaui, at a price level of $403/mt FOB. Such imports reflect an ongoing trend of consumers and traders in the northern and northeastern regions of Brazil relying on steel products from distant origins, such as Russia, China and South Korea, avoiding not only high domestic prices, but also the logistic hurdles to move volumes from the producers in the southeast, usually by truck, over very long distances.
Other sources of imported HRC in January were China (2,800 mt at $591/mt) and South Korea (300 mt at $737/mt)
USD = BRL 4.32 (February 13)