According to Goldman Sachs's analysts, Brazilian steelmakers are likely to increase prices of their flat steel that sold to domestic carmakers by 5% by the end of this year. The vehicle manufacturers maintain long-term contracts with steel companies and the price is usually negotiated annually or every six months, depending on market conditions Analysts said their studies indicate that the current steel price paid by automakers is 10 percent below that paid by other customers of the steel, which is unusual. The company benefited from more adjustments, according to analysts, would be Usiminas, the largest supplier of steel to the automotive sector in the country which 35 % of its sales revenue comes from this sector. CSN also would be benefited from higher prices for vehicle manufacturers.
Source:
http://www.yieh.com/2.2.01.01stainlesssteelnews.aspx?no=66059&division=A2
