News Room - Steel Industry

Prices for domestic flat steel products in Brazil have slipped Real 20/mt for September shipments, as weak demand continues to dampen market sentiment, sources said Monday.

A source said "demand has been shrinking since projects are nearing conclusion, and there are no fresh investments on the horizon that would boost steel consumption."

Another source blamed the delicate economic situation in Brazil as the reason for the stagnation in activity.

A third source said steelmakers have not officially cut prices, "but they are conceding discounts more frequently," he said, without disclosing the values of these discounts, "because they can vary depending on each negotiation."

Platts assessment for Brazilian domestic hot-rolled coil is Real 1,950-2,060/mt ($538-$569/mt) for September shipments. Cold-rolled coil was assessed at Real 2,240-2,360/mt, while hot-dip galvanized coil was assessed at Real 2,580-2,770/mt. The monthly assessments are all ex-works, excluding taxes.

Values in US dollars may appear much lower due to the steep depreciation of the Brazilian currency. The exchange rate was Real 3.63/$1 on Monday, compared with Real 3.42/$1 on August 3.