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Brazil flat steel distributors notified of 5% price hike for October

Brazil flat steel distributors notified of 5% price hike for October

 

News is brought to you by Mr. Shailesh Karia

 

Published on 9th October, 2018

 

Sao Paulo — Brazilian independent flat steel distributors and service centers have been notified of a 5% price hike for purchases from Usiminas and CSN, effective October 1, Carlos Loureiro, president at the sector`s association Inda, said Tuesday.

 

"With the iron ore and coke prices increasing outside Brazil, there is space for higher [flat steel] prices in the domestic market," Loureiro added, citing Usiminas and CSN already informing customers about a new price list.

 

This is the fifth hike announced by Brazilian flats makers in 2018 for the distribution and industrial sectors.

 

Long-term contract prices with automakers were raised by 20% in January and are expected to increase 25%-30% until January 2019, Loureiro explained.

 

According to Inda data, distributors and service centers shipped 299,200 mt of flat products in August, a 0.8% decrease on the year. Compared to July, shipments increased 8.4%.

 

"We had higher shipments on a monthly basis mainly due to restocking by end users aware of the price increases announced by mills," Inda`s President Carlos Loureiro said.

 

Purchases from mills by distributors in August reached 300,100 mt, up 8.4% from year-ago levels, the data showed.

 

Imports closed August totaling 99,300 mt, a 14.7% decrease when compared to the year-ago month.

 

Inventories totaled 919,900 mt, up 0.1% from July, while average inventory turnover rose to 3.1 months of supply.

 

Inda expects August shipments and purchases to decrease 10% compared to August`s level, it said.

 

"There is a great level of uncertainty about how the market would turn out at the end of the year, with the elections in October," Loureiro added. "Each candidate represents a different scenario. We need to wait just a little longer to see what`s going to happen."

 

Source : https://www.spglobal.com//

 





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