HRC of the basic commercial grades are currently negotiated in the Brazilian domestic market by steel producers, in large volumes, at BRL 2,718/mt ($533/mt), comparable with BRL 2,805/mt two weeks ago, ex works, no taxes included.
Due to side effects of the Covid-19 outbreak, domestic steel prices are in the lowest levels in recent years, as producers are trying to increase the volume sold via reduced prices, while clients remain reluctant to close fresh deals.
It is estimated that prices are currently negotiated at a discount of 5 percent in relation to the imported product after clearing customs, when the historical average is a premium in the range of 5 to 10 percent.
The last offer of HRC received by Brazilian importers from China was priced at $530/mt, against $558/mt over the last weeks. Such price refers to CFR conditions to ports in the Brazilian South or Southeastern coast, having the A36/Q235 grade product as reference.
In March, Brazil imported 3,900 mt of HRC, against 16,300 mt in February. China was the main origin in March (3,800 mt at $564/mt), while small volumes were imported from South Korea and Japan.
USD = BRL 5.10 (April 9)