A source from a Brazilian exporter told SteelOrbis that local producers are negotiating rebar export offers at $615/mt, FOB conditions, against $630/mt over the last two weeks.
The source mentioned that the reduction reflects efforts to set the export price in line with international prices. However, due to high production costs linked to the highest energy rates in recent years, margins are squeezed and exports are losing attractiveness, chiefly when compared with domestic prices of BRL 2,900/mt ($918/mt), ex-works, full taxes except IPI.
In September, Gerdau exported rebar at $474/mt, while the Simec plant at Pinda, Sao Paulo State, exported at $520/mt, both FOB conditions, with price deals probably closed in July.
USD = BRL 3.15 (October 13)