Anemic demand stemming from the Covid-19 pandemic resulted in another round of import price decreases for flat-rolled steel in South America, with the majority of customers reported as skipping orders for June shipments, market sources said.
"There is no market right now, no matter the price I offer," a Brazil-based trader source said.
"Most South American importers are out of the market at the moment," a US-based trader added. "I am just hoping there are no defaults going forward."
Peru, Ecuador and Colombia were among the countries with tighter restrictions to contain the Covid-19 spread in the continent. Some states in Brazil also implemented selective quarantine periods, with the federal government refusing to enforce mandatory lockdowns. Demand plummeted, nonetheless.
Chile was already easing its curfew in some regions, but buyer interest remains lackluster, market participants said.
"Our focus is now starting to shift from June shipments to July shipments," a mill source said. "We do not expect the situation to improve in the South...