Brazilian steel distributors downgrade 2015 sales forecast

Brazilian steel distributors have downgraded their 2015 sales forecast to a 4 percent drop from an earlier 2 percent growth estimate, according to media reports.

The nation’s distributors association Inda said distributors bought some 351,000 mt of long steel in January, 5.9 percent less compared to the same month of the previous year.

Compared to December 2014, long steel purchases in January increased by 25.2 percent, above Inda’s estimates for the period, which was a 20 percent increase.

However, the increase in long steel purchases in January over December was a result of an anticipation caused by the announced price hikes of 5 to 8 percent, which SteelOrbis reported earlier in January.

Distributors’ sales diminished 16.1 percent in January, year-on-year, to 342,000 mt, but increased 26.6 percent compared to December.

According to Inda, sales and purchases for February should fall 10 percent. “There’s no way to have steel use growth with a fall in GDP and a decrease in the fixed capital investments,” said the associations’ president, Carlos Loureiro.