Reuters reported that Brazilian flat steelmakers led by Cia Siderúrgica Nacional SA will raise prices as early as this month,in a move that may face mild resistance from clients as inventory remains low.
As per report"CSN announced a 3.5%price hike for hot rolled coil and galvanized products and a 7.2%increase in cold-rolled steel products."
The report added"ArcelorMittal upped prices by an average 4.37%."
The report also said"Usinas Siderúrgicas de Minas Gerais SA also announced potential price hikes although is yet to implement them."
The report quoted a São Paulo based distributor as saying that"Mills are seeking to recoup some of the profit margins that they lost last year.In our case,since we are building up inventory,there's is no way we can fight this increase."
Instituto Aço Brasil,the group representing the sector,said in November that steelmakers in Brazil will likely witness a recovery in sales and a reduction in excess capacity next year as recent government measures to revive growth are bearing fruit.Yet,recent industry data pointed to still weak demand in December.According to the IABr,as Instituto Aço Brasil is known,flat steel demand was down 2%MoM basis in November,with shipments to distributors tumbling 4%in the same period.
According to Sindisider,the group that represents steel distributors,inventory rose slightly to the equivalent of 2.4 months of sales in November.Yet,analysts estimate that the ratio could rise in December.
