South America’s Steel Plate Market: Reduced Demand and Price Volatility

Last week, the South American steel import market saw relatively stable plate prices, with current hot-rolled coil import prices around $550-570/ton CFR South America. Prices increased slightly by $10/ton compared to last week but decreased by $50-60/ton CFR month-on-month. Due to significant currency fluctuations, many traders are cautious, opting to inquire rather than place substantial orders.

Policy Changes: Brazil’s Import Tax Adjustment and Anti-Dumping Investigations

Recently, Brazil eliminated certain steel product import tax benefits, a policy shift expected to impact the import-heavy Brazilian market. Additionally, Brazil has launched anti-dumping investigations on various key steel products, including non-grain-oriented electrical steel, steel pipes, cold-rolled coil, hot-dip galvanized, and aluminum-zinc coated materials. These products include customs codes 7209.16.00, 7209.17.00, 7209.18.00, 7210.49.10, 7210.61.00, and 7210.69.11. As a result, market expectations for import volume have become increasingly conservative.

Market Outlook: Weak Demand, Mill Maintenance, and Limited Transactions

Given the low demand within the Brazilian market, some steel mills have begun production adjustments, with several entering planned maintenance periods. This trend will likely add to the subdued market atmosphere. November is expected to see continued weak demand in the South American steel plate market, with limited import volume recovery anticipated. Traders and importers may proceed with a more conservative approach amid these developments.