Brazilian domestic steel prices to rise until year-end, Usiminas says

Brazil’s largest producer of flat-rolled steel, Usiminas, sees room for a domestic price increase to be implemented before the year-end because the dfegree of parity with import prices has been closer than historical levels, commercial vice-president Miguel Homes said on Friday October 25.

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...

Published

Renato Rostás

October 28, 2019

19:58 GMT

São Paulo