This week, Brazil experienced a decline in import prices for hot rolled coil (HRC) as Chinese suppliers reduced their offers. Current prices for Chinese-origin HRC are reported to be around $520-540 per metric tonne (t) cfr, down from $545/t cfr the previous week.
Chinese mills have lowered their prices in an effort to revive demand that had been strong earlier this year. Argus reported that the fob Tianjin HRC index fell to $449/t, marking a fifth consecutive day of decline. Sellers have adjusted their prices to approximately $440-445/t fob China for Q235-grade HRC, influenced by weak buying activity and decreasing domestic sales prices in China.
In Brazil, domestic steelmakers like Companhia Siderurgica Nacional (CSN) have opted not to increase prices for some products as previously planned, aiming to offer higher prices in October due to anticipated stronger domestic demand, particularly from the automotive sector. Despite stable prices, the premium for domestic HRC remains higher than expected, with Brazilian HRC ex-works priced at around R3,900-4,000/t ($698-716/t).
