Credit Suisse analyst Caio Ribeiro said local flats steelmaker Usiminas might see room for a flat steel price hike in 2020, according to a media report from Money Times.
Ribeiro said Usiminas has been bullish over price hikes in the short term, despite tough negotiations with automakers in January. “There might be room for a marginal price hike,” he said.
BTG Pactual also commented, saying there are several factors impacting Usiminas’ negotiations with automakers. Those include currency rates, which rose in the past few weeks, with the appreciation of the USD over the Brazilian Real (BRL), global steel prices and domestic demand for steel products.
“The three combined factors are helping (Brazilian) steelmakers to increase steel prices in the 12-month (steel price) negotiations,” BTG Pactual said.
Brazilian steelmakers negotiate steel prices with domestic automakers on an annual basis, usually in the beginning of the year.