The reference price for Brazilian rebar exports is currently $800/mt, FOB conditions for the CA-50 grade, for sales to South American countries, against $750/mt two weeks ago.
Local sources mentioned that most of the exports are inter-company deals, with prices not necessarily linked to market conditions, while some exports are based on contract formulae, which include a delay when prices have extreme variations in a short period.
In March, Brazil exported 32,900 mt of rebar while importing 31,000 mt of the product, against 27,800 mt and 15,800 mt, respectively, in February.
In the Brazilian domestic market, rebars are offered by producers in medium to large volumes at BRL 6,194/mt ($1,151/mt), against BRL 5,574/mt two weeks ago, ex-works, full taxes except IPI, for the supply in the country’s Southeast and South regions. For the North and Northeastern regions, prices are reportedly BRL 80/mt higher, under the same conditions. The increase reflects the decision by steel producers to increase their prices to compensate for higher production costs and exchange rate variations. So far in the year, producers have already increased steel prices by 50 percent.
USD = BRL 5.38 (May 5)