Prices for domestic hot-rolled coil in Brazil rose slightly during the first full week of December, market sources have reported.
As previously reported, local flats makers announced a new price adjustment for December. This is the fifth hike in 2016.
An end user confirmed CSN and Usiminas are already negotiating prices reflecting the latest price increase.
"Both mills increased prices around 10%, but I could manage to close a deal with an adjustment of only 5% this week," he detailed.
"I understand the reason the mills justify their need to raise their prices -- costly raw materials -- but I see them also taking advantage of the more expensive Chinese products too. If international prices go up, domestic mills will also release a new price list to follow the trend," the source explained.
A distributor also confirmed the new price lists already being put in practice during the recent days.
"Gerdau and ArcelorMittal will also raise their prices, but only in the coming days," he said. Currently, he said he saw deals being closed at around Real 2,200/mt ($654/mt), excluding taxes.
A trader agreed with the end user: "Brazilian mills are struggling with more expensive coal and iron ore, but if the international prices go up, domestic mills will follow them," he said.
The S&P Global Platts weekly assessment for Brazilian HRC was up Real $35/mt to Real 2,225/mt ($661.40/mt) ex-works on Friday, excluding taxes, based on a range of Real 2,150-2,300/mt. Last week the weekly assessment was Real 2,190/mt ($651.85/mt) ex-works, excluding taxes, based on a range of Real 2,100-2,280/mt.
On December 9, foreign exchange rate was Real 3.36/$1.
