A source from a major distributor in the south of the country told SteelOrbis that domestic sales of HRC, during the first three weeks of July, declined by 15 percent in volume from the same period in June.
“We are selling HRC of the basic commercial grades at BRL2,230/mt ($702/mt), FOB full taxes except IPI, a price stable in BRL since a 7 percent increase in February,” the source said, adding that the company was planning to reduce the price as an alternative to increase sales, but they concluded that lowering prices would not have a significant impact on the volume of sales.
According to the source, the reduced demand derives from the poor performance of the country’s economy, encompassing all industrial sectors and affecting also the demand of other flat products, such as CRC, plate and Galvalume.
In June, ArcelorMittal Tubarao exported HRC at 356/mt, Usiminas at $580/mt, CSN at $580/mt and Gerdau Ouro Branco at $434/mt, all FOB conditions.
1 US$ = BRL 3.22 (July 22)