Domestic prices for merchant hot-rolled coil steel in Brazil remained unchanged in the week that ended October 6, amid chatter about a potential price hike in the coming weeks, according to sources.
"The market this week is calm due to the holidays in China and I believe the price hike [in Brazil] will not stick, unless the Chinese steel market reopens on consistent high -- which I do not expect," said a trader.
Last week, during an annual international steel pipe fair in Sao Paulo, Tubotech, several sources from tube and pipe companies said representatives of domestic flat steel producers were saying a price adjustment was set to come into being soon.
One executive said he was informed about "hikes coming from Usiminas and CSN of around 10%" but he added "ArcelorMittal and Gerdau were still quiet."
The Brazilian mills declined to comment.
"Considering the current level of prices we have here in Brazil, two recent hikes and the drop seen in Chinese prices, I don't see this new price hike attempt sticking," said the executive.
Another source from a different company mentioned the information being disseminated by the mills "did not include the exact percentage our company would receive", but affirmed he had heard "something around 10%."
An end-user, though, said he had not heard any talk of a third hike this year. "Really? Another one? But we already had two adjustments this year," he said.
S&P Global Platts' weekly assessment for Brazilian domestic HRC was flat at Real 2,310/mt ($731.70/mt) ex-works, excluding taxes, based on a range of Real 2,300-2,320/mt.
