A Sao Paulo-based distributor told SteelOrbis that the shutdown of Usiminas’ heavy plate rolling mill at its Cubatao plant, in the city of same name in the state of Sao Paulo, is adding a 4 percent cost to the product local distributors are now buying from Minas Gerais.
“We’ve haven’t seen many changes in the prices of heavy plates from Usiminas so far, despite the company’s complicated situation, but we’re feeling the impact of the shutdown [of primary activities] at Usiminas’ Cubatao mill, as we’re now buying the product from the state of Minas Gerais,” a distributor based in the state of Sao Paulo said.
A 4 percent increase was added to heavy plate prices due to logistics costs, as the Cubatao mill was better located for distributors based in the state of Sao Paulo.
Usiminas, which was said to increase heavy plate prices by December this year, didn’t officially confirm or deny the rumor, according to local distributors.
“We’ve been hearing from clients and distributors that heavy plate prices should be increased by the end of the year, but so far, there was no announcement from the company,” said a distributor who buys heavy plates from Usiminas, adding the steelmaker usually increases plate prices by 6-8 percent at a time.
Usiminas announced in late October it would temporarily halt production at its steel shop, sintering and coking units at its Cubatao mill. The company’s heavy plate rolling mill was also temporarily suspended.
A distributor in the southeast region of the country told SteelOrbis it is selling A36 plates from Usiminas in the domestic market at FOB 2,250/mt ($564.20/mt), no taxes included, a BRL 50/mt ($12.53/mt) increase from October. “We’re not selling much of this product, since demand for it has been stagnant,” the distributor said.
S355 plates from Usiminas are said to be sold by a distributor at FOB 3,350/mt ($840.04/mt), a BRL 410/mt ($102.81/mt) increase from October. The price includes the 4 percent logistics cost added to distributors to bring the product from Minas Gerais to Sao Paulo. Distributors said they’re receiving their orders from Usiminas in the same 45 shipping days, despite the increased distance.
USD = BRL 3.98 (December 22)