Brazil exported 173,300 mt of HRC in December, 12.6 percent less than in November, at an average FOB price 2.3 percent lower, $306/mt.
The exporters were ArcelorMittal (100,100 mt at $281/mt), CSN (57,900 mt at $333/mt), Usiminas (13,400 mt at $$388/mt) and Gerdau (1,800 mt at $272/mt), while the main destinations were Latin America (76,200 mt), the US (45,600 mt), the EU (41,300mt) and Asia (11,653 mt).
A source from a small distributor in Rio de Janeiro told SteelOrbis that he is selling HRC in the domestic market at BRL 2,520/mt ($632/mt), FOB, full taxes except IPI, following a recent 5 percent price increase, while a large distributor in the south of the country told SteelOrbis that he is selling the product under the same conditions at BRL 2,230/mt ($559/mt), a price stable since February 2015.
An industry source commented that the countervailing duty established by the US Department of Commerce (DOC), 7.42 percent, on Brazilian exports of HRC, will have a limited impact on the overall exports of HRC from Brazil.
He quoted total exports of HRC from Brazil in 2015 at 2.034 million mt, of which only 555,200 mt, or 27 percent of the total, were destined to the US. But he conceded that CSN could be more affected by the measure, as its subsidiary in the US, CSN LLC, uses Brazilian HRC in its Terre Haute, Indiana plant.
In 2015, CSN exported 313,100 mt of HRC to the US at $439/mt, while Usiminas exported 217,500 mt of the product at $431/mt to the US, both prices FOB conditions.
According to Marco Polo Lopes, executive president of the Brazilian Steel Institute, IABr, the determination of the US DOC is still under evaluation, but he reaffirmed that the Brazilian steel producers do not receive any kind of subsidies.
1 USD = BRL 4.02 (January 13)