After Tuesday's announcement that Brazilian steelmaker CSN was increasing flat steel prices by between 6 and 8 percent, Brazilian industry sources reported that the market is at a standstill considering prices will also be affected by an import tax increase that is expected to be implemented by next week.
SteelOrbis sources said that local producers are increasing prices in advance "and nobody wants to buy, as the tax burden will increase."
After a similar increase last year, Brazil's finance minister Guido Mantega said that "the increase of the tariff will help stimulate national production, but if there was an increase in the value of those items in the domestic market, it's going to generate inflation."
The increase announced Tuesday would be the second since January. According to reports, the price of cold rolled produced by the firm will rise 6 percent, those of hot rolled, up 7 percent, and of galvanized zinc, 8 percent.
Usiminas also reported in late February that prices would increase by 6 to 8 percent from March.