A source linked to a distributor in Sao Paulo told SteelOrbis that BRL 4,000/mt ($1,274/mt) ex-works, full taxes except IPI, is the current sales price for HRC to consumers, with the product of the 1008 grade as reference.
The price, which was confirmed by a distributor in Rio de Janeiro, compares with BRL 4,100/mt ($1,309/mt), under the same conditions two weeks ago.
Despite the reduction in price, both distributors are expecting a 5 percent increase for October, reflecting increased demand as the local economy is giving its first signs of recovery, coupled with reduced offer of steel products, as the Brazilian steel production remains hovering around 63 percent of its nameplate capacity.
Additionally, Usiminas announced yesterday a proposed a 10.2 percent price increase for flat steel products, to be effective in October, although it is unclear if the full increase amount will go through.
USD = BRL 3.14 (September 21)
