A Sao Paulo-based distributor told SteelOrbis that Gerdau has raised long steel prices by 17 percent.
“We’re currently selling WFB from Gerdau at BRL 2,900/mt ($751.88/mt), ex-works, no taxes included,” the source said, adding the price hike—for all long products, not just beams—was “unexpected.”
Another Sao Paulo-based distributor said it found no way to fight the price increase, despite the current low sales volumes. “We needed to pass the price hike to our clients, but I know that some distributors are avoiding passing the price increase to their clients, as some of them still have high inventories.”
The negotiation margin and the level of inventories each distributor has explain the BRL 180/mt ($46.66/mt) price difference seen among different distributors. A distributor said that with the price increase it is now selling WFB from Gerdau at BRL 3,080/mt ($798.54), ex-works, no taxes included.
SteelOrbis assessed WFB prices among different distributors at a range of BRL 2,900-3,080/mt ($751.88-798.54/mt), ex-works, no taxes included.
“We lost some orders,” a distributor said. “Some buyers are waiting to see if Gerdau will step back and get WFB prices back to normal. A 17 percent increase is too much for us in a year of weak demand.”
1 US$ = BRL 3.85 (September 10)