Steel consumption falls in September as imports remain a risk, says J.P. Morgan

Apparent steel consumption in Brazil fell 4.6% in September compared with the same month last year but rose 3.9% from August, maintaining 4.7% growth year to date, according to J.P. Morgan.

Analysts Rodolfo Angele and Tathiane Martins Candini wrote that despite the drop in imports in September, total import volume for the year remains high — up 9.6%, driven mainly by flat steel products.

They noted that without official antidumping measures, Brazil’s steel market will remain under pressure from foreign competition, which benefits companies such as Gerdau, given its stronger exposure to the U.S. market.

In September, the annual decline in demand was mainly due to a 7.4% contraction in flat steel consumption, while the monthly increase was led by long steel products, with sales remaining stable.

Source: Valor Econômico

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