Steel distributors in Sao Paulo are negotiating HRC for the domestic market in small volumes at BRL 3,765/mt ($923/mt), against BRL 3,877/mt two weeks ago. 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 the producers.
In August, Brazil imported 7,700 mt of HRC, against 16,000 mt in July. The main origin was Venezuela (4,500 mt at $369/mt, FOB conditions), certainly a price not linked to market conditions, with possible indication that the material is from a different country, as Venezuela reportedly has no HRC available for export.
Other origins were Turkey (1,700 mt at $515/mt), China (1,300 mt at $611/mt) and South Korea (200 mt at $687/mt), all FOB conditions and different quality grades.
The last offer of HRC received by Brazilian importers from China was priced at $555/mt, against $570/mt two weeks ago. Such price refers to CFR conditions to ports in the Brazilian south or southeastern coast, having the A36/Q235 grade product as reference.
USD = BRL 4.08 (September 5)