Brazilian farmers upped new machinery purchasing to prepare for an expected robust crop cycle ahead, boosting steel demand for silos and equipment.

Argus-assessed HRC cfr Brazil edged higher at $505-535/t from $505-530/t a week earlier.

Grain producers were heard to ease an ongoing silo shortage and are working to expand storage capacity to protect their harvest during the rainy season.

Most Chinese steelmakers maintained offers above $525/metric tonne (t), confident that demand for silos could drive buyers to pay more.

Exporters' offers reached up to $560/t, but no deals were closed at this level. Traders told Argus that offers in the $505–510/t range for higher volumes remain in the market but have become rarer since last week.

Fewer low-priced steel offers increased the Argus midpoint price of imported hot-rolled coil (HRC) shipped to Brazil by $2/t in a week.

Despite the uptick in demand, Brazilian steelmakers were unable to raise prices because the premium on imported HRC remained competitive as Brazil's real appreciated against the dollar throughout the week.

Buyers avoided domestic deals this week, expecting prices to go back down in response to worldwide safeguard restrictions on Chinese steel.

Brazilian ex-works HRC stayed flat at R4,000-4,300/t, maintaining a 5pc fall year-to-date.

Brazilian supply company Conab expects 2024-25 grain and oilseed crops to increase by 11pc, compared with the prior cycle, it said.