Brazilian distributors are having difficulty competing with imported wide flange beams (WFB), which are being sold domestically at lower prices, a Sao- Paulo-based source told SteelOrbis.
According to the source, domestically-made wide flange beams profiles are being sold at BRL 2,052/mt ($703/mt), ex-works, no taxes included, while the imported product's price reaches BRL 2,010/mt ($688/mt) FOB.
"We're considering to discontinue the sales of this product as a result of the competition with the imported product," the source said, adding it couldn't understand how other distributors could sell the product at such a price.
The distributor added Gerdau applied a 7 percent readjustment for the product earlier in April, but prices vary, even when buying from a Gerdau-owned distribution chain. In February this year, sources said WFB was being sold domestically among distributors at BRL 2,350/mt ($805/mt) FOB.
Sources attributed conflict in price trends to Gerdau dominating much of the long steel distribution chain, leaving a few or no space for local distributors. "They own the long steel distribution chain, and there's no space for other competitors," said a Sao Paulo-based trader.
$1 = BRL 2.92