Category Archives: Brazil Steel Prices

Arcelor Mittal Brazil restarts expansion project

Arcelor Mittal Brazil is set to resume its expansion project at Arcelor Mittal Vega, a flat-steel cold-rolling, pickling and galvanising facility in the state of Santa Catarina.

The company will add a new continuous annealing line and a third galvanising line for the production of cold-rolled and galvanised products.

The capacity of the facility is set to increase by 700,000 tonnes to a total of 2.1 million tonnes per year, and
production is due to begin in 2021.

The project will increase production for the automotive, construction and home-appliance sectors at the Vega unit, allowing the company to meet market expectations and provide high-strength and high-quality steel products.

Vega’s expansion project has been on hold since 2011, due to the global crisis that started in 2009 and the Brazilian economic recession, which caused a reduction in the domestic market for vehicles.

Today, 50% of the production at Arcelor Mittal Vega is aimed at the automotive market.

Benjamin Baptista Filho, president of Arcelor Mittal Brazil, said: “We expect the automotive industry to substantially increase its utilisation rate.  At the outset of the crisis, automakers were practically operating just to serve the Brazilian and Argentinian markets only.  The crisis forced them to develop alternative markets. We currently have a market to sell Arcelor Mittal Vega’s products above the existing capacity. We could be selling more.”

Source: Machinery Market

Stainless Steel Market Disrupted by Escalating Trade Tensions

Slow Seasonal Demand and Trade Sanctions Affect Steel Prices in Emerging Markets

Mexico

Mexican steelmakers continually pressed for increased prices, in July, but mills offered a degree of flexibility and discounting when deals were finalised. The recent depreciation of the national currency against the US dollar has exacerbated the situation. Meanwhile, the National Chamber of Iron and Steel Industry (CANACERO) lobbied the new government for tougher measures to protect the manufacturing and steel industries from foreign competition. The previous Peña Nieto administration imposed commercial import duties on US goods totalling US$3 billion.

Brazil

Brazilian steelmakers struggled to raise transaction values to distributors, in July. End-users remain risk averse. The majority plan to continue with cautious purchasing strategies. Price support from export demand is limited.

Russia

Russian trading houses plan to persevere with conservative inventory levels, reflecting a seasonal slowdown in end-user demand. They expect domestic suppliers will concede further price reductions, to fill their rolling schedules. Meanwhile, Russian steelmakers criticised the European Union’s decision to impose restrictions on imports of steel goods, this month.

India

Demand is tepid throughout India. Sales volumes have slowed in the country’s northern and central states. Stockists operating in these regions have begun to offer discounts to facilitate deals. Traditionally, the monsoon season ends in September. Both primary and secondary steel producers were wary to offer price reductions and more favourable payment terms, fearing such measures would be counterproductive.

Ukraine

The Ukrainian steel market is described as “steady but slow”, as the summer commences. Manufacturing activity has improved, although businesses are still reluctant to invest. The mills are targeting overseas markets to offload their surplus output.

Turkey

Difficult business conditions persist in Turkey. Producers would like to implement a domestic price advance, citing the depreciation of the Turkish lira against the US dollar and rising international prices, but, so far, this has not proved possible. Sales to end-users and distributors remain tepid.

United Arab Emirates

Emirati service centres are wary of carrying too much inventory during the summer months. They note that it is risky to conclude any deals, at present, because of volatile import price quotations. Moreover, sales volumes are forecast to decline further, in August and September, as warmer temperatures are likely to curb construction activity. Export opportunities are limited outside the GCC region.

South Africa

The South African market is very quiet, with little business activity of any significance taking place during the holiday period. Domestic buyers remark that their suppliers’ current initiatives to lift prices are ill-timed, counterproductive and would only escalate import tonnages. We note little appetite for purchasing, at present, among construction firms. Labour unrest and union difficulties add to the uncertain climate.

Source: MEPS Developing Markets Steel Review

Temporary Safeguard Measures Unsettle EU Steel Market

BRAZIL STEEL MARKET ROUNDUP FROM MEPS INTERNATIONAL LTD

Underlying demand continues to be weak, in Brazil, according to MEPS. Hot rolled coil stockists are now predicting that domestic suppliers will roll over their transaction values in the next trading period.

Negative price sentiment persists in the commodity plate market. Steel intensive industries continue to press their domestic suppliers for lower transaction values. Meanwhile the Secretariat of Foreign Trade has initiated antidumping investigations regarding imports of hot rolled carbon steel plate from China.

Cold rolled coil traders expect their domestic suppliers to maintain their pricing positions in the next trading period. INDA has reported that imports of cold rolled coil increased, in May, by 6.1 percent month-on-month. The majority of this material was sourced from China.

The business environment in the wire rod market has become more difficult than it was at the beginning of the year. Local traders plan to persevere with cautious procurement strategies next month as a result.

Tough trading conditions persist in the structural sections market. The distribution network continues to be weighed down by high inventory levels and weak trading volumes. Similarly, merchant bar prices continued to be hampered by weak market fundamentals.

Source: MEPS – Developing Markets Steel Review – June Edition

BRAZIL STEEL MARKET ROUNDUP FROM MEPS

Suppliers in Brazil have held hot rolled coil transaction numbers steady for April business, according to MEPS. However, local stockists are anxious that domestic suppliers will press for price increases in the next trading period.

Hot rolled plate traders plan to persevere with conservative procurement strategies, citing weak shipment volumes to pipe and tube fabricators. Meanwhile, cold rolled prices held relatively stable month-on-month in April.

Challenging business conditions persist in the Brazilian coated coil market. Local traders expressed concerns that their domestic suppliers will seek higher prices in May.

Structural section and merchant bar distributors contend that local products remain overpriced. They fear that foreign supply will intensify if the domestic/import price premium continues to widen.

Source: MEPS Developing Markets Steel Review – April Edition