News Room - Steel Industry

Spot prices for domestic flat steel products in Brazil are unchanged in mid-April, but some discounts have been achieved in recent days, distributors said Thursday.

Buyers are saying these discounts are variable. "Depending on the volumes purchased and from which mill the material is coming from, for example, the distributors can bargain something of a discount with the producers," one source said.

Unlike in the past few months, there is no longer an expectation of a new price list in the coming months. "Demand is weaker than it was in the beginning of the year," a second source said.

A third buyer added that consumption slows in the first few months of the year as a result of vacations and the Carnival season. But the first quarter ended and demand in April has cooled down even further and may end the month with a double-digit percentage drop versus March, he said.

Another executive said the reason for the slowdown in demand is limited credit. "Consumers are only purchasing the necessary material because nobody has spare cash to fund inventories," the source said.

Brazilian steel producers are declining to comment on their pricing policy.

Platts' April assessments show domestic Brazilian hot-rolled coil is being traded at Real 1,985-2,090/mt ($652-$686/mt). Cold-rolled coil is priced at Real 2,295-2,390/mt, while hot-dip galvanized coil is selling at Real 2,620-2,700/mt. All prices are ex-works, excluding taxes. Including IPI, Pis/Cofins and ICMS, HRC would be selling at Real 2,873-3,025/mt ($955-$1,005/mt), CRC at Real 3,322-3,459/mt and HDG at Real 3,791-3,908/mt.