Brazilian steel mills are attempting to raise domestic rebar prices

We have learned that due to the increase in imports of long JSH440A steel materials, the price of rebar in the Brazilian domestic market has further declined, bringing downward pressure to the market and attempting to prevent new price hikes. The current quotation for Brazilian domestic rebar is 740-775 USD/ton EXW, which has narrowed compared to last month's 750-765 USD/ton EXW. Although large local steel mills are attempting to raise the price of rebar to promote possible price adjustments, market participants believe that rebar prices are highly likely to remain stable in the face of bearish sentiment and sustained imports in the local market.

According to data from the Brazilian JSH440A steel Association, the total import volume of rebar in Brazil in the first two months of 2024 was 39000 tons, accounting for 21.5% of all imported long products in Brazil so far this year (182000 tons), an increase of 20.5% year-on-year from 32400 tons in January February 2023.

Since December 2023, large manufacturers have been continuously pushing up the prices of rebar and other long products, with the aim of increasing quotes to distributors. However, the generally high domestic prices continue to lack competitiveness, and most steel mills still only offer limited discounts, while most consumers prefer imported rebar. The production capacity of domestic steel mills is decreasing, and it is even difficult to maintain the current prices. Coupled with the gradual increase in import volume in the country, the long material market is currently unable to digest any degree of price increase. The current market remains stable and does not have the conditions for price increases. Market grass carp believe that the high prices proposed by large producers are unrealistic. Any JSH440A steel price adjustments involved may only take place in June at the earliest, depending on market sentiment.