Steel distributors in Sao Paulo are negotiating HRC for the domestic market in small volumes at BRL 3,677/mt ($903/mt), full taxes except IPI conditions, a price stable in BRL terms from two weeks ago.
The price refers to the 1008/1012 grades, 3.00mm thickness product, delivered to customer, and it is usually entitled to significant discounts in case of large volumes or direct acquisition from producers.
Prices are expected to increase over the next few weeks, as the producers have announced a 10 percent price increase for January to be implemented throughout the month.
The last offer of HRC received by Brazilian importers from China was priced at $570/mt, against $565/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.
In December, Brazil imported 1,600 mt of HRC, against 1,800 mt in November. The origins were China (1,300 mt at $596/mt) and South Korea (300 mt at $713/mt), both FOB conditions and different quality grades.
USD = BRL 4.07 (January 9)
