HRC export offers stable in Brazil

Monday, 05 October 2020 00:35:38 (GMT+3)   |   Sao Paulo
       

Brazilian producers are negotiating HRC exports in a reference price of $540/mt, stable from two weeks ago. Such price refers to FOB conditions for the basic commercial grades.

In August, Brazil exported 41,300 mt of HRC, in average at $456/mt, while importing 1,100 mt from China at $563/mt, both FOB conditions and different quality grades.

In the Brazilian domestic market, HRC of the basic commercial grades is offered at BRL 3,759/mt ($674/mt) against BRL 3,477/mt 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.

The difference in BRL reflects not only exchange rate variations, but also a temporary shortage of steel products in the domestic market, as domestic demand is increasing while domestic production is in the process of restarting blast furnaces that were idled due to the effects of the Covid-19 pandemic.

According to claims by the association of machinery producers in Sao Paulo, ABIMAQ, their smaller associates, which usually buy steel products from the distribution chain, are paying premiums of up to 50 percent in relation to the price paid by the large companies or distributors.

The last offer of HRC received by Brazilian importers from China was priced at $560/mt, against $578/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 5.58 (October 5)


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