Brazil HRC import prices rise on tariffs
Brazil prices for imported hot rolled coil (HRC) increased this week as tariffs on imported products kicked off and signs out of China's steel sector were mixed.
Import prices for Chinese origin HRC into Brazil were heard around $545/metric tonne (t) cfr, sources said, up from the $470-494/t cfr range heard in the previous week.
This sharp uptick followed Brazil's decision to increase tariffs on imported products after domestic producers claimed that unfair competition — chiefly from the east Asian nation — was hampering their operations. The new tariffs took effect in June but only started to be felt by consumers in August, sources said.
Another reason for the increase in Brazil cited by some sources was a possible price floor reached by Chinese mills in recent weeks. These producers have expressed concerns about their financial health amid a slow economic recovery that precipitated multi-year HRC price lows in China earlier this month. Argus assessed HRC fob Tianjin at $442/t on 19 August, the lowest level since July 2020, when most of the global economy was in the midst of pandemic lockdowns. In the latest assessment, the HRC price rose to $462/t, up by nearly 4.5pc in less than two weeks.
China sought outlets for its steel outside of the country, lifting exports of the broad category of steel and iron products by 23pc to 55.2mn t year to date July 2024 from the same period in 2023, according to customs data. At this rate, China's yearly exports in 2024 will be the highest since 2016. Brazil, Chile and Peru have been among the countries widely increasing their imports.
It is uncertain whether the price increase will begin to weigh on demand, sources said, as buyers balance greater availability of imported steel against claims that many prefer domestically-sourced HRC.
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US Fed cuts rate by half point, signals more to come
US Fed cuts rate by half point, signals more to come
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Japan's Tokyo Steel cuts sales prices on weak demand
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July EU HRC imports show 175,000t pullback
July EU HRC imports show 175,000t pullback
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