Rebar prices remain negotiated for export from Brazil at $590/mt, FOB conditions, with the CA-50 grade as reference, the same price since early November 2017.
Plans to reduce prices, allowing for exports to countries outside Latin America, were put on hold due to the recent devaluation of the USD vis-à-vis the BRL, which has neutralized margin gains from lower power rates, a local exporter told SteelOrbis.
In 2017, power rates in Brazil were the highest in recent years, reflecting low water levels at hydroelectric dam plants, causing more intense use of high-cost energy from thermoelectric plants. The current rainy season, more intensive than expected, is replenishing dams and allowing for a reduced utilization of thermoelectric plants.
In December, all the 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.