Reflecting chiefly the devaluation of the BRL against the US dollar over the last few weeks, Brazilian producers have increased their offers of HRC in the domestic market to a reference price of BRL 3,000/mt ($513/mt), a 10 percent increase in BRL from two weeks ago, sources tell SteelOrbis. Such price refers to ex-works conditions, no taxes included, HRC of the basic commercial grades.
Domestic steel prices in Brazil are usually linked with the equivalent price of the similar product imported, after clearing customs, with discount or premium depending on the intensity of demand.
Despite the increase, the domestic price of HRC remains in the lowest levels in recent years, reflecting the impact of the Covid-19 outbreak over the local economy.
The last offer of HRC received by Brazilian importers from China was priced at $520/mt, against $533/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 5.84 (May 7)