Flat steel sales by Brazilian distributors in September declined 31.8 percent, year-on-year, the nation’s steel distributors association, Inda, said on Tuesday.
In the month-on-month analysis, flat steel sales in September declined in by 2.9 percent, Inda said.
Purchases of steel by local distributors reached 229,400 mt in September, 34.7 percent down, year-on-year, but 4.5 percent up, month-on-month, reflecting the move of some distributors in guaranteeing in advance better prices for steel before the announced 8 percent price hike for flats could take place, as previously reported by SteelOrbis.
The trade group said imports by local distributors in September registered a sharp decline of 57.6 percent, year-on-year, to 86,700 mt, and 8.9 percent, month-on-month. The exit of several importers of steel, as well as the valuation of the USD before the BRL were some of the reasons that help explain the decline in imports in September. The share of imported steel in the Brazilian domestic market reached 11.7 percent in September, but according to Inda it is expected to reach about 10 percent in 2015.
Inda said apparent steel consumption by local distributors rose 5.5 percent in September, month-on-month, to 739,500 mt, but declined 24.6 percent, year-on-year.
Steel inventory by local distributors in September reached 964,700 mt, while stock turnover remained stable in 3.9 months.
The trade group said steel sales by distributors in Q3 totaled 756,900 mt, 30.2 percent down, year-on-year. In the nine month period from January to September, sales reached 3.3 million mt, 22.4 percent down, year-on-year.
Purchases by local distributors in the Jan-Sep period totaled 3.2 million mt, down 22.6 percent, year-on-year.