On May 31, SteelOrbis reported ex-China offer prices to Chile for HRC at $470-485/mt CFR, CRC at $495-515/mt CFR, and HDG at $570-590/mt CFR.
According to sources, Chinese flat steel offers to Chile are now being heard for HRC at $460-475/mt CFR, CRC at $495-505/mt CFR, and HDG at $560-575/mt CFR. These prices reflect a decrease of $10/mt on HRC, a $10/mt decline from the top of the previous CRC range, and for HDG, a loss of $10/mt on the bottom of the range and $15/mt from the top of the range.
Interestingly, a source noted that some Brazilian offers were heard price matching Chinese offers in the region. He stated, “A Brazilian mill was heard lowering its export price and offering HRC at $465-470/mt CFR Chile.” It is unknown whether the offers will continue to match pricing, but a source expressed desire for more competitive pricing from regional suppliers since it would assist with inventory management exposure given the shorter delivery times.
According to Alacero, the regional steel industry association, Latin America imported 2.6 million mt of steel products from China in January-April 2017. Chile imported 518,000 mt (20 percent), Central America 508,000 mt (19 percent), and Peru 389,000 mt (15 percent) in the same period. Additionally, Chile increased its steel imports by 43 percent from approximately 362,000 mt in January-April 2016.