Brazilian hot-rolled coil (HRC) prices trended slightly down because of competitive offers from Asian suppliers, prompting domestic mills to maintain active discounts.

Import flows surged by 36pc in March, despite the tariff-quota system in place, according to the steel industry chamber, Instituto Aço Brasil.

Demand remained steady, while increased supply drove prices down for the third consecutive week.

Asian suppliers are offering HRC enriched with boron as an alternative to bypass the 25pc tariff-quota, which excludes this type of coil, market participants told Argus.

Argus-assessed HRC cfr Brazil inched down to $505-530/metric tonne (t) this week from $510-530/t the previous Thursday.

Offers as low as $500/t and as high as $560/t were heard, but no deals were closed at this range. A trader reported a deal at $525/t involving a 10,000t shipment from China in June.

Import costs would be lower if not for port congestion at São Francisco do Sul, which has driven freight rates up to $70/t, compared to $50/t in January.

The Argus price for Brazilian ex-works HRC edged lower at R4,000-4,300/t from R4,010-4,300/t the previous week. Local mills increased flat steel prices in January, but the increased competitive imports dragged them down to levels seen in December.