The demand recovery from the drought following restrictions to curb the Covid-19 spread since April as well as rising raw material and semi-finished steel costs supported these higher prices, participants said.
“We're receiving October-shipment requirements and inquiries from clients at much higher volumes than September shipments,” a source at a mill told Fastmarkets. “This time, clients are in a rush to secure volumes, while mills are in no rush to secure orders.”
Although Chile kept consuming imported steel in April-June at much smaller tonnages, Peru, Ecuador and Colombia have been returning to the market since July after being mostly absent during the second quarter of the year after restrictions were being withdrawn while the Covid-19 infection rate eases in South America.
“At first, clients rejected the increased offer prices, but then new rises came and scared them,” a Brazil-based trader said. “So there were deals but mostly to restock and...