Greater steel imports cause distributors to lose market share

The flat steel market in Brazil may adjust in the coming months. With high imports, distributors are managing to maintain a 2-3 month regulatory inventory. According to data from INDA (the national institute of steel distributors), purchases abroad of rolled steel products between January and May totaled 718,000 tons, an increase of 89.6%. In May, imports reached 189,000 tons, up 152.5%.

INDA’s CEO, Carlos Loureiro, said that this increase in imports, especially in May, caused steel distributors to lose their share of apparent consumption of steel products in the country. The network’s internal sales compared to April fell 6.6%, to 320,600 tons. However, compared to May 2020 – a critical moment during the pandemic­ – the indicator showed an expansion of 52.7%, according to INDA

“This year, we are going to have record imports. Performance over these five months already shows this, but the trend is to reduce purchases abroad in the coming months. Prices are no longer as attractive as before.”

According to him, the price of a ton of hot-rolled coil sold in the United States soared in May, reaching US$ 1,820. “If we compare it to August 2020, when the ton was sold at US$ 520, it is an appreciation that has never been seen since the middle of the last century”, said Loureiro.

Source: Valor Econômico

To read the full original article, click on the link:

https://valor.globo.com/empresas/noticia/2021/06/23/maior-importacao-de-aco-ja-tira-espaco-de-distribuidores.ghtml

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