Charcoal is used as a reductant in a number of small Brazilian blast furnaces: local fundamentals prevail in setting its price.
SBB 4 Feb 2011 After two consecutive hikes in January, charcoal prices from the midwestern Brazil state of Mato Grosso do Sul are said to be fluctuating in early February depending on buyer location, Steel Business Briefing learns from domestic charcoal producer group Sindicarv.
Currently, steel mills from Minas Gerais state, in the eastern part of the country, are purchasing the raw material for around R$420-480/tonne (US$251-288/t) delivered. This is a decrease of R$60/t (US$36/t) from the R$480-500/t (US$288-300/t) del registered in mid-January. The decrease could be the result of a slight fall in charcoal demand in the region in early February, SBB notes.
Meanwhile, buyers in Mato Grosso do Sul are paying about R$340-370/t (US$204-222/t) del, which is a slight increase of R$7/t (US$4/t) from the previous R$334-363/t (US$200-217/t) del for the local product.