Prices for imported hot rolled coil (HRC) in Brazil fell this week as Chinese suppliers cut offers.
Import prices for Chinese origin HRC into Brazil were heard around $520-540/metric tonne (t) cfr, sources said, down from the $545/t cfr heard in the previous week.
Chinese mills were heard to be offering HRC at lower levels as they seek to resume the demand pace seen earlier this year.
Argus assessed today the fob Tianjin HRC index at $449/t, falling for a fifth consecutive day. Sellers lowered sales prices by about $2/t to the equivalent of about $440-445/t fob China for Q235-grade HRC produced by smaller Chinese mills on scant buying and falling Chinese domestic sales prices.
Argus also heard that some domestic steelmakers such as Companhia Siderurgica Nacional (CSN) decided not to increase prices for some of its products, as previously announced, and that it would try to offer material at higher levels in October. One of the reasons for that would be a stronger domestic demand, boosted mainly by the automotive sector, which has seen increases in production and sales in August.
Despite the steadiness in prices, the premium for domestic HRC versus imported material remained higher than expected by consumers, with Brazil HRC ex-works heard at around R3,900-4,000/t ($698-716/t).
