Brazilian flats producer Usiminas exported 5,700 mt of heavy plate in September, 66.4 percent more than in August, at an average FOB price 80 percent higher, $624/mt.
According to the ministry of development, industry and foreign trade, MDIC, the average price of September is based on two very different prices: $269/mt FOB for the 2,100 mt shipped to Vietnam and $855/mt FOB for the 3,300 mt shipped to Argentina.
The significant increase of the average FOB price also reflects the fact that the exports of August were for most of the volume shipped to Vietnam, at only $249/mt.
Usiminas has been hit by reduced demand of the product with more than 10mm in thickness, due to suspension of acquisitions directly or indirectly linked to projects of the national oil company Petrobras, which has put on hold new projects due to accusations of corruption.
Meanwhile, Brazil imported 2,400 mt of the product in September from EU countries at $554/mt, FOB conditions.
A source from a distributor in the south of the country told SteelOrbis that he remains selling heavy plates at BRL 2,200/mt ($568/mt), FOB full taxes except IPI, stable in BRL since January 2015.
1 USD = BRL 3.86 (October 28)