The Brazilian flats producer Usiminas exported 80,100 mt of HRC in October, a 308 percent increase from September, at an average FOB price reduced by 10.5 percent to $360/mt, according to the ministry of development, industry and foreign trade, MDIC.
All the shipments were from the Cubatao plant, which will have its crude steel production suspended over the next few months, and were chiefly destined to the US (37,300 mt) and Mexico (30,500 mt).
Industry sources told SteelOrbis that Usiminas should focus the production of the Cubatao plant in export markets, as it will maintain hot and cold rolling operations, while the domestic market should be preferentially served by the Ipatinga plant.
Conversely, exports of HRC by ArcelorMittal Tubarao in October declined from September by 46.3 percent to 66,800 mt, at $320/mt, by CSN a 29 percent decline to 37,300 mt at $397/mt, while from Gerdau Acominas the volume of HRC exported declined by 45.6 percent to 4,000 mt, at $353/mt, all FOB conditions.
A medium sized distributor in Rio de Janeiro told SteelOrbis that he remains selling HRC in the domestic market at BRL2,400/mt, ($637/mt) FOB, full taxes except IPI, a price stable since January, adding that a 9 percent increase of such price was already decided, but the timing is still to be established.
USD = BRL 3.76 (November 11)