Imported Brazilian hot-rolled coil (HRC) offers slid to as low as $488/metric tonnes (t) in the latest week as demand from domestic buyers slipped and importers of Chinese metal dropped prices to match.

Domestic mills also reduced their prices and negotiated discounts in an effort to close deals.

Still, consumers were not enticed to enter the spot market over lower prices, sources said, because of high stock levels and weak end-user demand.

Flat steel inventory levels increased by 17pc in May, reaching 1mn t, steel distributors' association Inda said. Some service centers have nearly four months of available inventory, above the historical average of 2.9 months.

Argus assessed HRC Brazil cfr at $488-520/t today, down from $507–525/t the week before on the back of weak demand.

Markets last week bumped slightly on temporary adjustment in offers, after a three-week decline.

Traders reported difficulty in selling consistent tonnages to consumers with recent purchases more sporadic and smaller in volume. This trend was just enough to maintain current inventory levels, a market participant said.

In addition to high inventory levels, buyers credited elevated domestic interest rates for curbing demand from their customers over the past month. They anticipate sitting on the sidelines until there was further clarity on what type of impact the Brazilian central bank's target interest rate, which hit a 20-year high of 15pc on 18 June, could have on the wider economy.

Slow trade pushed the ex-works Brazil HRC price to R3,500-R3,700/t, down from R3,800–4,000/t a week prior. The average domestic price tumbled 13pc year-to-date.

CRC/HDG market

Chinese cold-rolled coil (CRC) cfr prices fell to $550-590/t after nearly a month flat at $600/t, sources indicated.

Many buyers have opted for domestic cold-rolled coil (CRC), as Brazilian mills have recently come close to matching import prices. Imports take longer to arrive and can be subject to tariffs of up to 25pc and possible anti-dumping duties. They are generally not considered competitive unless discounts exceed 30pc, which is increasingly difficult for importers to match.

The Brazilian government reported that a probe into Chinese CRC imports uncovered evidence of dumping, but the government decided not to impose any provisional duties until the end of the investigation in early 2026. Buyers are prepared to source elsewhere if dumping duties are eventually applied, a trader said.

A Chinese mill sold a small volume hot-dipped galvanized (HDG) to a Brazilian buyer this week, but Argus could not confirm the sale price by press time.