Steel distributors in Sao Paulo are negotiating HRC for the domestic market in small volumes at BRL 3,823/mt ($851/mt), delivered to customer, full taxes except IPI conditions, for the 1008/1012 grade, 3.00mm thickness product. The price is unchanged in BRL terms from two weeks ago.
Sources tell SteelOrbis that direct sales by steel producers in large volumes are currently priced in average at BRL 3,156/mt, ex works, full taxes except IPI for the basic commercial grades.
The last offer of HRC received by Brazilian importers from China was priced at $571.50/mt, marginally changed from $572/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 January, Brazil imported 10,700 mt of HRC, against 4,300 mt in December, in an increase reflecting chiefly an import from Russia of 7,600 mt by a trader in the Northeastern state of Piaui. The figures reflect a trend among consumers and traders in the Northern and Northeastern regions of Brazil to obtain steel products from distant origins, such as Russia, China and South Korea, avoiding not only high domestic prices, but also the logistics hurdles to move volumes from producers in the Southeast, usually by truck, over very long distances.
USD = BRL 4.49 (February 27)