Brazil Avg Steel Prices Decline by 4% m/m in May: MEPS

BRASILIA (Scrap Register): 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 Developing Markets’ Steel Review.

Negative price sentiment persists in for Hot Rolled Coil. 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).