Brazilian producers remain negotiating HRC exports in a reference price of $470/mt, stable over the last four weeks. Such price refers to FOB conditions for the basic commercial grades.
In July, Brazil exported 71,800 mt of HRC, against 21,200 mt in June. Turkey was the main destinations of the Brazilian HRC in July, 33,400 mt at $346/mt, followed by Portugal (31,300 mt at $554/mt), China (4,300 mt at $296/mt) and South American countries (2,800 mt at $422/mt), all FOB conditions and different quality grades.
The exporters were ArcelorMittal (36,000 mt at $350/mt), CSN (31,400 mt at $554/mt) and Gerdau (4,400 mt at $296/mt). All the shipments to Turkey were from ArcelorMittal, those to Portugal were from CSN and to China were from Gerdau.
Meanwhile, a trader in the northern state of Piaui imported in July 9,700 mt of HRC from Ukraine at $447/mt, FOB conditions, in a deal that reflects not only logistic hurdles to move steel products from the producers in the Southeast by road in long distances, but also the high domestic prices when compared to international steel prices.
In the Brazilian domestic market, HRC of the basic commercial grades are offered at BRL 3,452/mt ($642/mt) against BRL 3,172/mt two weeks ago, CFR, no taxes included. The increase reflects both higher international prices and exchange rate variations.
The last offer of HRC received by Brazilian importers from China was priced at $551/mt, against $532/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.
USD = BRL 5.38 (August 10)