A source linked to a major shipbuilder in Brazil told SteelOrbis that he is receiving lower offers from domestic and foreign sources to supply heavy plate of the shipbuilding grade.
“It is a pity that we have temporarily suspended acquisitions, as we could be paying $500/mt to $550/mt, CFR conditions, for the imported product, against a range of $580/mt to $600/mt in November 2014, same conditions, when we closed our last import deal,” he said, adding that the shipbuilding activity was affected by the investigations of corruption in the oil company Petrobras, the main client of the country’s shipbuilders.
The source mentioned that they could also buy from Usiminas a similar product at the equivalent to $600/mt to $650/mt, CFR conditions, comparable to $650/mt to $700/mt in November 2014.
In June, Brazil exported 9,400 mt of heavy plate, with more than 10mm in thickness, at an average FOB price of $519/mt, while importing 33,000 mt from Austria, at $741/mt, FOB conditions, of a special grade, not produced in Brazil, destined to the production of pipelines.