MEPS STEEL PRICES IN BRAZIL – MAY 2014
Average domestic strip mill product
prices in Brazil, declined by an average of 4 percent, month on month, in
May - according to MEPS latest steel report
Negative price sentiment persists in the Hot Rolled Coil market. Local distributors
report that key consuming industries are scheduled to either shut down or
operate shorten working weeks during the World Cup 2014 tournament (starting
June 12). Meanwhile, Asian import offers for June-July shipment stood at
US$585/595 per tonne CFR São Francisco do Sul (excluding import duty).
The outlook for the Hot Rolled Plate market is unchanged. Local stockists have
warned that current quotations are unattractive and run the risk of fuelling
import activity. Most firms are wary of carrying too much inventory over the
next two months. In week 21, plate quotations from Asia for June-July shipment
were US$560/570 per tonne CFR Santos (excluding import duty).
Buying sentiment has weakened in the Cold Rolled Coil market, fuelled by slow
underlying demand from the home appliances and automotive industries. The
Ministry of Development, Industry & Foreign Trade (MDIC) has reported that
imports of cold rolled coil totalled 35,942 tonnes in April, up 83 percent,
year-on-year. The majority of this material is sourced from China. Offers from
Asian mills for June-July shipment stood at US$685/695 per tonne CFR São
Francisco do Sul - down 0.7 percent, month-on-month, (excluding import duty).
Hot Dipped Galvanised steel traders have reiterated that purchases from foreign
mills will intensify if the domestic/import price premium continues to widen.
The MDIC has reported that imports of galvanised products totalled 31,363 tonnes
in April – down 31.9 percent, month-on-month. Offers from Asian suppliers for
June-July shipment were US$715/725 per tonne CFR Santos (excluding import duty).
Source: MEPS -
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