The Brazilian capital goods association, Abimaq, will meet with China-based Baosteel and local trading house Comexport to pave the way for its members to import more steel amid rising prices and tight supply in the domestic market, the association said on Wednesday June 23.
"We still don't know details about tonnage or types of products that will be needed," Abimaq's executive president, Jos?(C) Velloso, said. "But the main idea is to leave an import channel open forever, without volume limitations."
Capital goods manufacturers in Brazil mainly buy hot-rolled coil and hot-dipped galvanized steel. In total, those companies need around 300 different types of steel, Velloso added.
The meeting is scheduled to take place on Thursday June 24, with Baosteel presenting potential export allocation to Brazil, its specifications and technical assistance services. Comexport will provide potential funding to these transactions in local currency, sources said.
Two trader sources said that other trading companies have been in talks with Abimaq to engage in this process with its members, but Comexport has recently taken the lead.
Abimaq state steel supply is currently insufficient in Brazil and...