A source from a 380,000-mt/year mill in Brazil said steelmakers are in a “fight” to increase rebar sales, as the prospects for the nation’s steel industry remain bearish.
Recently, Companhia Siderurgica Nacional (CSN) was able to sell its CA-60, 10mm thickness rebar, at FOB BRL 2310/mt, no taxes, to clients across Brazil, according to this source.
“They closed some deals at this price, which is way cheaper than the CA-60, 8mm rebar we sell,” the mill source said, adding it sells the CA-60, 8mm rebar in Brazil at FOB BRL 2700/mt, no taxes.
“Sales fell for everyone. The market is working with lower prices. All steelmakers are trying to market their steel. They’re doing whatever it takes to commercialize their products,” it said.
According to this source, mills are selling the CA-50, 10mm thickness rebar at very similar prices. Recently, a Sinobras source said it is selling the product at FOB BRL 2800/mt, no taxes, while a distributor from ArcelorMittal in Rio de Janeiro said the same product was being sold at FOB BRL 3080/mt, full taxes.
Recently, Carlos Loureiro, president at the Brazilian steel distributors association, Inda, said mills are currently offering 5-7 percent discounts to sell their steel.
1 US$ = BRL 3.33 (July 24)