Brazilian producers are negotiating HRC exports with their South American clients in a reference price of $1,150/mt, against $1,300/mt three weeks ago, FOB conditions for the basic commercial grades. The decline reflects lower international prices of the product.
In June, Brazil exported 27,100 mt of HRC, while importing 25,700 mt of the product, comparable to 13,000 mt and 3,900 mt, respectively, in May.
The exports in June were from Usiminas (26,700 mt) and ArcelorMittal (400 mt), destined chiefly to South American countries (26,900 mt at $745/mt), while 200 mt at $1,096/mt were destined to Mexico, all FOB conditions.
The imports came from Russia (15,600 mt at $674/mt), China (9,800 mt at $649/mt) and South Korea (300 mt at $673/mt) and were mostly destined to states in the North and Northeast of the country (22,400 mt at $677/mt), also FOB conditions, reflecting high domestic prices and logistic hurdles to move steel products by road from the domestic producers, located in the Southeast.
In the Brazilian domestic market, HRC of the basic commercial grades is offered at BRL 6,900/mt ($1,356/mt), against BRL 7,100/mt three weeks ago, ex-works conditions, no taxes included. Such price refers to high and medium sized volumes of the product, when sold directly to large consumers or to distributors.
USD = BRL 5.09 (July 14)