[SMM Steel] 7.31 SMM Global Steel Daily Report

[Brazil] Higher freight offsets falling export offers as Brazil's flat-product import prices steady

Brazil's flat-product import prices were broadly steady this week, as elevated ocean freight effectively offset the decline in export offers from major shipping origins. HRC and CRC import prices steadied at 590 and 700 USD/tonne CFR respectively. Recent geopolitical turbulence in the Middle East has pushed up marine fuel costs, while weak Asian demand and softer raw materials prompted Vietnamese mills to cut export offers. On the domestic front, dragged by weak downstream demand, tight credit and rising inventories, Brazil's domestic HRC ex-works prices were flat this week, with no price increase planned for August. In addition, Brazilian slab export trading also slowed this week as major exporters made internal transfers to their own plants in Europe and the United States at offers of 575-585 USD/tonne FOB.