Steel distributors in Sao Paulo are negotiating HRC for the domestic market in small volumes at BRL 4,089 ($810/mt), against BRL 3,823/mt two weeks ago. The price refers to the 1008/1012 grades, 3.00mm thickness product, delivered to customer, full taxes except IPI conditions.
Sources told SteelOrbis that direct sales by steel producers, in large volumes, are currently priced at BRL 2,805/mt ($560/mt), ex-works, no taxes included.
According to a source linked to a steel distributor, a 10 percent price increase announced by producers will not be implemented due to the reduced demand of HRC from the Covid-19 outbreak. Instead, negotiations are focusing on higher volumes in exchange for lower prices.
The last offer of HRC received by Brazilian importers from China was priced at $558/mt, stable over the last four 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 February, Brazil imported 14,600 mt of HRC from Russia at $441/mt, 1,600 mt at $588/mt from China and 100 mt from South Korea at $767/mt, all FOB conditions and different quality grades.
USD = BRL 5.01 (March 26)