Shipowners charged extra for steel deliveries to Brazil's São Francisco do Sul port this week because congestion caused longer wait times, supporting imported steel prices.

Argus-assessed HRC cfr Brazil nudged up to $530-550/metric tonne (t) from $525-549/t a week before.

International suppliers kept prices steady and even offered minor discounts, preventing sharper hikes, but rising freight costs pushed up HRC cfr prices.

Port congestion pushed freight costs from $40/t in January to $80/t in May, which could rise further as the ongoing customs auditors' strike escalates. Auditors slowed import paperwork as they push for nearly 30pc salary increases. The six-month strike has disrupted steel and other commodity markets.

Workers expect the government to propose new conditions by Friday, after both sides failed to reach an agreement in the 14 May meeting. The auditors' union warned it will escalate the strike next week if no acceptable terms are discussed.

Domestic

Brazilian mills lost market share among domestic consumers, limiting their ability to raise prices despite longer import lead times.

Import penetration reached 22.5pc in April, up 3.9 percentage points from a year earlier, according to Instituto Aço Brasil.

The domestic Argus price for Brazilian ex-works HRC has been flat for five consecutive weeks at R4,000-4,300/t, after peaking at R4,600/t in late March.

Some importers bypassed the 25pc tariff-quota limits by adding boron to HRC, pressuring domestic prices down as the material entered under a different classification.

The quota system is set to expire on 31 May, but market participants remain uncertain if other safeguards will replace it next month.