Sources told SteelOrbis that ArcelorMittal is likely to keep rebar prices stable in Brazil, as a result of the weak demand for the product in the domestic market.
“Price adjustment is a banned word for steel producers in Brazil right now,” a Sao Paulo-based trader said.
Earlier this week, an ArcelorMittal executive said the company isn’t looking at prices, as it focuses in cost reduction.
“We’re very focused in reducing our costs and in being more competitive. The market isn’t demanding [a price increase], so we’re not analyzing it,” said Jefferson de Paula, chief executive officer of Long Carbon Central and South America at ArcelorMittal, while talking to journalists in the sidelines of the Brazil Steel Congress. The event was held earlier this week in Sao Paulo.
A high-level executive from Sinobras told SteelOrbis this week that there’s no room to increase rebar prices, which in his view are “very similar nation-wide.”
The Sinobras source said it is selling its CA-50, 10mm thickness rebar at FOB BRL 2,800/mt, no taxes included.
According to a Rio de Janeiro-based distributor, the CA-50, 10mm thickness rebar from ArcelorMittal is currently being sold in Brazil at FOB BRL 3080/mt, full taxes.
1 US$ = BRL 3.15 (July 16)