A source from a distributor in Rio de Janeiro told SteelOrbis that a 6 percent price increase for HRC was actually implemented, but suspended the day after by the local flats producer Usiminas.
The source said that the decision derives from complaints by distributors and consumers, who argued that higher prices would reduce the already small volume of business, currently affected by the poor performance of the domestic economy.
With the increase, the domestic price of HRC would have reached BRL 2,845/mt ($775/mt), FOB, full taxes except IPI, equivalent to $581/mt FOB conditions, no taxes included.
However, price of HRC in the Brazilian domestic market is now back at $548/mt FOB conditions, no taxes included.
The source added that, according to Usiminas, the 6 percent increase can be implemented again in the short term.
1 USD = BRL 3.67 (April 7)