Belo Horizonte, Brazil-based steelmaker Usiminas said Tuesday during a quarterly conference call that the company expects steel prices to be relatively unchanged over the next few months. Usiminas' head of sales and commercial also added that import competition is likely to subside slightly, as international prices fluctuate and Brazil's real weakens.
High costs spurred the steelmaker into a R37 million (US$19.7 million) loss in Q1, compared to income of R77.5 million in Q4 2012 and R16.02 million in Q1 2011. Julian Eguren, CEO of Usiminas, commented that the company currently "faces a difficult and complex situation" as local costs remain high.
Steel output fell to 1.67 million mt in Q1, down 6.2 percent year-on-year, while revenues fell 5.8 percent and sales dropped 4.8 percent.