Brazilian steelmakers have started a new round of higher prices for its flat steel products, although it is still uncertain how much of the desired hike would be absorbed by a depressed consuming market, sources said Tuesday.
An executive affirmed that "ArcelorMittal implemented the new prices on May 1, followed by CSN on Monday."
Usiminas' higher values will be in effect on May 5, as previously announced by its commercial vice president Sergio Leite last week.
The new pricing lists are reportedly elevating values by 12%-14% in May from April's. Usiminas was the only company that confirmed an increase of 12% over its April's pricing list.
ArcelorMittal, CSN and Gerdau say they do not comment on their pricing policies.
"Considering the new list, hot-rolled coil can be negotiated at around Real 1,700-1,800/mt ($476-$504/mt) ex-works, excluding all the taxes," a source said.
"In the past, some price adjustments were announced, but didn't last long," another source added. "Now, steelmakers are making a a desperate attempt because they are selling these products in the domestic market at extremely low levels."
According to Leite during the latest Usiminas' conference call for financial results, Usiminas' HRC will be sold into the domestic market at around $550-$560/mt ex-works in May, following the adjustment.
The exchange rate against the dollar Tuesday was Real 3.57/$1.
The Platts monthly assessment for Brazilian domestic hot-rolled coil for May shipments is at Real 1,930-2,100 ($540-$588/mt), ex-works, excluding taxes. Cold-rolled coil was assessed at Real 2,300-2,400/mt, same basis, while hot-dip galvanized coil was Real 2,650-2,800/mt.
