A source from Sinobras, a rebar producer in the state of Para, in the northern region of Brazil, told SteelOrbis that the company is having no problems selling its entire monthly production of 30,000 mt, in spite of the economy crisis affecting the country’s economy, chiefly in the civil construction sector.
“Our production is small and we have a competitive advantage in serving our region and the northeast vis-à-vis our competitors from the southeast,” the source said, adding that the company is even selling regular tonnages to clients in the southeast.
Sinobras is currently selling its CA-50, 10mm thickness product at BRL2,740/mt ($900/mt), CFR no taxes, to clients in the southeast, compared to BRL2,780/mt one month ago.
Conversely, the rebar producers in the southeast, Gerdau, Votorantim and ArcelorMittal, are operating at an estimated 70 percent production rate on average.
The high domestic prices are stimulating Brazilian imports of rebar, a market controlled by Turkish suppliers, reaching 14,600 mt in March at an average FOB price of $544/mt.
Last year, Brazil imported in average 22,400 mt of rebar per month.