South American flat-rolled steel import prices edged lower in the week to Friday August 20 amid aggressive bidding from customers for material from origins other than China and much more competitive alternatives emerging from the Commonwealth of Independent States.
Chinese offers to the continent remained scarce due to uncertainties involving a potential export tax expected to be introduced in the country, port congestion and prohibitive freight rates, market participants said.
There was increased
market chatter about China applying a 15-25% export tax on steel from September, which could increase offer prices by at least $100 per tonne across the whole value chain. Additionally, buyers were concerned about rising Covid-19 cases in the Asian nation
leading to more port closures.
Meanwhile, buyers sought alternatives, with CIS-origin material becoming feasible. Lower bids were also being accepted by Brazilian and Japanese mills, pushing the overall price in the region down.
"Regarding demand in South America... we have received a healthy volume of requirements or inquiries for October shipment and could also conclude and collect normal booking volumes," an ex-China mill source said.
For example, Fastmarkets' price assessment for steel hot-rolled coil...