Sergio Machado says, China quoted most competitive rates for Steel tender

If sources are to be believed, then China’s steelmakers have won contract to supply steel to Petrobras’ naval transport company. The price quoted by Chinese steelmakers turned out to be the most competitive in a tender floated by Petrobras for the supply of 18,300 tons of steel for ship building for carrying out the Programme for Modernisation and Expansion of the Transpetro Fleet (promef).15 companies from over 8 countries had filed this tender.

Sergio Machado, “The rates quoted by the Chinese steelmakers were the lowest among the ones quoted by 15 companies from 8 countries. This tender would help us expedite our Promef program.”

In order to build the ships to expand Transpetro’s fleet 680,000 tons of steel will be needed and, of that total, the company has already contracted 150,000 tons But out of this 150,000 tons, only 1/3^rd  are supplied by Brazilian companies with companies from China, the Ukraine and South Korea being major suppliers. Speaking at a seminar on mining and steel making, Machado also announced that the company had increased its steel needs for the next few years by 30,000 tons to 710,000 tons, due to the Programme for Modernisation and Expansion of the Hidrovia Fleet, which includes construction of 20 tugs and 80 barges for rover transport between Tietê and Paraná.

Transpetro is Latin America’s biggest ship owner and Brazil’s main fuel logistics and Transport Company, and is 100% owned by Petrobras.