Brazilian producers are negotiating HRC exports with their South American clients in a reference price of $850/mt, against $800/mt two weeks ago, FOB conditions for the basic commercial grades.
Meanwhile, importers in the North of the country are receiving offers from Asian producers in the range of $840/mt, against $810/mt two weeks ago, CFR conditions for the basic commercial grades. A local source mentioned that no import deal was closed at that price level.
In February, Brazil exported 17,000 mt of HRC, in average at $571/mt, FOB conditions, almost entirely shipped by ArcelorMittal to South American countries, while a small volume was shipped by Usiminas to Mexico.
Meanwhile, Brazil imported in February 10,400 mt of HRC from Russia at $496/mt and 3,800 mt from China at $564/mt, both FOB conditions. Most of the volume was imported by states in the North and Northeastern regions, reflecting logistic difficulties to send steel long distance over roads from producers in the Southeast. A local trader mentioned that he has not received offers from steel producers over the last few weeks.
In the Brazilian domestic market, HRC of the basic commercial grades remains offered at BRL 5,429/mt ($980/mt), stable in BRL terms from two weeks ago, CFR 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 5.54 (March 18)