Chinese sellers lowered prices for hot-rolled coil (HRC) offered to Brazilian buyers for the first time since mid-April.

The adjustment aimed to offset rising freight costs and push for deals during a weaker demand period. Argus-assessed HRC cfr Brazil declined to $525-541/metric tonnes, down from $530-550/t a week earlier.

Brazilian steel buyers held off on closing deals this week, reducing demand for spot transactions and putting downward pressure on import prices.

Importers avoided buying more steel because of the uncertainty surrounding the renewed tariff-quota on 23 steel products and sluggish demand from construction.

Brazil extended the 25 tariff-quota system for 12 more months, starting in June, but details on volumes are yet to be released.

Buyers postponed their decisions until next week, waiting on specifics about the tariffs, which now included four extra products.

The highest interest rate levels in nearly 20 years also threaten to hurt demand, especially in the construction sector, market participants said.

Despite the potential for new tariffs to drive up domestic prices, weak demand makes a price increase unlikely.

The domestic Argus price for Brazilian ex-works HRC has remained flat at R4,000-4,300/t for six consecutive weeks.