Rebar prices remain negotiated for export from Brazil at $590/mt, FOB conditions, with the CA-50 grade as reference, the same price since November 2017.
A source from a local producer mentioned that energy tariffs paid by the country’s electric arc furnace (EAF) plants are being gradually reduced, as hydroelectric plants replenish through a strong rain season, reducing the utilization of the high power tariffs associated with thermoelectric plants.
“With lower power costs, our margins will increase, and we will be able to extend exports beyond neighbor countries,” the source said.
In December, all rebar exports from Brazil were destined to South American countries, with Gerdau exporting at $528/mt, ArcelorMittal at $586/mt and Votorantim at $570/mt, all FOB conditions, with price deals probably closed in October.