A source from a rebar producer in the north of Brazil told SteelOrbis that selling the CA-50, 10mm diameter product at BRL2,640/mt ($754/mt), CFR to clients in the southeast, no taxes only PIS Cofins levies included, the same price in BRL since June.
“I am aware that the rebar producers in the southeast are having to reduce production and prices to cope with the poor demand from the civil construction sector, but we are in a better situation,” he said, adding that the company has a small production and a privileged location to serve the markets in the north and northeastern states.
He mentioned that although the plant is located far from its clients in the southeast, the high prices there are more than sufficient to compensate for the poor logistics.
Meanwhile, a distributor in the southeast told SteelOrbis that he is selling the same CA-50, 10mm product at BRL2,289/mt ($654/mt), CFR, full taxes conditions, stable in BRL since a 3 percent reduction in July.
But when the price in $ is considered, the prices for both suppliers actually went down by 5 percent over the period.
Such high domestic prices remain fueling imports of the product from Turkey, in average at $490/mt in July, FOB conditions, for price deals probably closed In May.
1 US$ = BRL 3.50 (August 21)