South America flat steel import market mostly up on higher freight, deals outside China

June 26, 2021 / www.metalbulletin.com / Article Link

South American flat-rolled steel import prices either increased or were unchanged in the week to Friday June 25 due mostly to rising freight costs and more expensive deals, mostly with Japan and Brazil.

Export allocation from China for shipment in August was limited because of recent cuts in value-added tax rebates and chatter of further reductions and potential new export taxes, market participants said. Demand appeared to remain firm, leading customers to seek more material from other origins.
Chinese offer prices on an fob basis were stable or lower during the week. But rising freight rates due to vessel shortages and port congestion in Asia and South America pressured those prices upward.

Those awaiting delivery of material from China to the Pacific Coast were paying freight rates closer to $80-90 per tonne from $65-70 per tonne in previous months. Cargoes to Brazil had freight costs of $85-100...

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