Sales of flat steel products by Brazilian distributors increased to 331,000 mt in May from 301,100 mt in April, according to the sector institute INDA.
Under the same comparative basis, purchases by the distributors chain in May increased from April by 11.5 percent to 354,500 mt, while the level of inventories increased by 2.9 percent to 841,000 mt, reaching the equivalent to 2.5 months of consumption, against 2.7 months in April, a level considered as comfortable, when compared to the historical average of 3.0 months of consumption.
Imports in May increased by 3.6 percent from April, reaching 190,400 mt. Such import figures include heavy plates, HRC, CRC, zinc coated, HDG, pre-painted and Galvalume.
According to INDA, expectations for June are for purchases and sales declining by 3 percent from May.
Speaking in a conference with analysts, the president of Inda, Carlos Loureiro, mentioned that the current price premium of steel products in the Brazilian domestic market, when compared to the imported product after clearing customs, is now reaching up to 30 percent, the highest figure in recent years.
In his view, such high premium is the main driver for the current high volume of imports of steel products, which have increased on yearly basis by 35.4 percent.