As previously reported by SteelOrbis, Brazil steelmaker Usiminas, along with other steel producers, was considering a price hike for most flats products. Following recent rumors that the steelmaker would raise flats prices, sources told SteelOrbis the company has indeed increased prices for most flat products.
“The only exception was the heavy plate, whose hike is now expected for December,” a Sao Paulo-based distributor told SteelOrbis.
“We received last Thursday a notice from Usiminas saying heavy plate prices would increase by 15 percent, but on Friday they stepped back in their decision and said the hike will now be postponed for December 30,” a distributor in the southeast region of the country said.
Last week, another distributor said there wasn’t so far any announcement from Usiminas saying plate prices would be increased. The source’s forecast that prices would remain unchanged proved to be right this week.
But sources still remain unsure on whether the announced hikes will be sustained.
“To be honest, I’m not passing the 8 percent hike on flats to my clients,” said a distributor who sells heavy plates as well as thinner-gauge plates from Usiminas. “I still have some inventories with the previous price. So I’ll stick with it and see if the flat hikes will be sustained.”
According to this source, he is still selling thinner-gauge plates from Usiminas at BRL 2,850/mt FOB, without the 8 percent hike announced by the steelmaker late last week.
As for heavy plates, prices haven’t changed in the past few weeks, according to local sources.
“I’m still selling A36 heavy plates from Usiminas at BRL 2,460/mt FOB and BRL 2,600/mt FOB, no taxes,” a source said, while referring to plates with thicknesses of 8-37mm and 37.5-76mm, respectively.
USD = BRL 3.87 (October 13)