Brazilian producers are negotiating HRC exports with their South American clients in a reference price of $1,200/mt, FOB conditions for the basic commercial grades, against $1,150/mt two weeks ago.
In July, Brazil exported 28,800 mt of HRC, while importing 23,100 mt of the product. Except for a small volume shipped to Mexico, the exports of July were all destined to South American countries. ArcelorMittal exported 25,600 mt, in average at $848/mt, while Usiminas exported 3,200 mt at $635/mt, both FOB conditions.
The imports came from Russia (18,600 mt at $691/mt), China (4,100 mt at $741/mt) and South Korea (300 mt at $667/mt), also FOB conditions.
All the Russian shipments were destined to the northern state of Amazonas, in a move reflecting the logistics problems to send steel products from domestic Brazilian producers in the Southeast over long distances by road.
In the Brazilian domestic market, HRC of the basic commercial grades is offered at BRL 7,131/mt ($1,358/mt), against BRL 7,109/mt two 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 = BRL5.25 (August 12)