Analysts at BTG Pactual expect the Brazilian steel industry to recover following the recent announcement by local steelmakers they would increase steel prices.
A media report by Valor said steelmakers should probably see a strong decline in EBITDA, however, a “recovery” for the sector “is already in place.”
BTG Pactual said Gerdau presents positive long-term prospects. Gerdau should probably see increased net profits in financial year (FY) 2021.
BTG Pactual said the recent price hikes announced by Companhia Siderurgica Nacional (CSN), Usiminas and ArcelorMittal Brazil, was due to higher costs, the strong depreciation of the Brazilian Real (BRL) over the US dollar (USD), and still steady steel consumption in China.