A source linked to a distributor in Sao Paulo told SteelOrbis that BRL 4,290/mt ($1,352/mt) ex-works, full taxes except IPI, is the current price for the sale to consumers of HRC, with the product of the 1008 grade as reference.
The price compares with $4,000/mt ($1,261/mt) three weeks ago, reflecting increased demand from different industrial sectors, which according to the source points to emerging signs of recovery of the domestic economy.
At least part of the 7.25 percent increase was already expected by distributors and consumers, as there were rumors of a 5 percent price increase for October over the last weeks.
The recent approval of antidumping measures by the EU against Brazilian HRC is expected to affect the Brazilian flats producer CSN, which has exported this year more than 312,000 mt of HRC to that region.
As a result, CSN is expected to increase its participation in the domestic market, which could lower domestic prices.
USD = BRL 3.171 (October 12)
