Market participants noted an unusual scenario of flat-rolled steel being offered to Brazil at lower levels than South American Pacific countries. Chinese steel, in particular, is often more expensive for Brazilian clients due to higher freight rates to the Atlantic coast of the continent.
“Coupled with an unidentifiable trend in freight dynamics, imported steel was cheaper for Brazil because participants are actively bargain-hunting,” one Brazil-based trader said.
Volatile foreign exchange rates in Brazil were forcing participants to be more aggressive on negotiations.
Fastmarkets’ latest price assessment for steel hot-rolled coil import, cfr main ports South America, was $500-530...