For the seventh consecutive week, Brazilian rebar export offers remain negotiated at an average of $590/mt, FOB conditions, having the CA-50 grade as reference.
An unchanged scenario of high production costs, chiefly energy, is still squeezing margins, restricting the competitiveness of Brazilian rebar to markets in Latin America and in the US.
But the situation could change with the start of the rain season, which could increase the level of the country’s dams at the hydroelectric plants, reducing the need for the use of high-cost thermoelectric plants. Already, the volume of rain during the second half of November was higher than expected, raising positive perspectives for the rest of the rain season, due to end in April 2018.
In November, ArcelorMittal exported rebar at $522/mt, Gerdau at $476/mt and the Votorantim group at $514/mt, all FOB conditions, with price deals probably closed in September.