BNamericas reported that iron ore and coal price adjustments are expected to drive steel price increases on the Brazilian market, following a similar trend already taking place internationally.
Brazilian steelmaker CSN said that the steel sold on the domestic market could see a double digit hike this year, while compatriot Usiminas said it will study price increases depending on raw material price adjustments.
However, steel prices also depend on demand, exchange rates and import duties.
Mr Rafael Weber analyst with Geracao Futuro forecasts an increase of 40% for iron ore and 50% for coal, resulting in a hike of 8.6% in Brazil for hot rolled sheets. He said that high prices on the international market help reduce imports, but also contribute to increases domestically.
According to analyst Mr Carlos Kochenborger from Sicredi bank, international prices and the current exchange rate can drive imports to Brazil, therefore it is essential that the import duty is maintained.
Mr Christiano da Cunha Freire president of Frefer expects that prices will increase in Brazil by up to 15% this year. Internationally, steel prices already rose some 20% from November through March.