While traditionally local steel is sold at a 10% premium over imports, taking into account duties and taxes, the company was aiming for a 5-10% price differential, he added. Currently, the premium averages 5%.
“We expect that our previous attempt to increase domestic prices will [take effect] during the fourth quarter,” Homes told analysts and investors during the company’s third-quarter earnings conference call. “A 5% rise to the distribution sector is already being implemented.”
Usiminas’ main competitor in the flat steel segment, Companhia Siderúrgica Nacional (CSN), has said that prices would be stable until the year-end
. But it calculated that prices had hit a bottom and would recover in 2020.
Flat-steel mills tried to impose a 10% price rise...