Brazilian producers are negotiating HRC exports with their South American clients in a reference price of $1,200/mt, against $1,300/mt three weeks ago, FOB conditions for the basic commercial grades.
In March, Brazil exported 101,000 mt of HRC, in average at $802/mt, while importing 2,600 mt of the product at $771/mt, both FOB conditions. Price deals for the exports were probably closed in January.
In the Brazilian domestic market, HRC of the basic commercial grades are sold, in medium to high volumes by steel producers, at BRL 6,700/mt ($1,311/mt), ex-works, no taxes included.
A source from a large distributor in the south of Brazil told SteelOrbis that he remains closing deals for local sales of HRC of the basic commercial grades, small volumes, in a reference price of BRL 9,000/mt ($1,761/mt), ex-works conditions, full taxes except IPI.
Such domestic prices could be modified over the next few days, if the reduction to zero of import taxes is effectively approved on May 12. The negative impact on current prices is estimated at 12 percent, although it is still not clear if HRC will be included in the import tax reduction.
USD = BRL 5.11 (May 11)
