Companhia Siderúrgica Nacional (CSN), the Sao Paulo, Brazil-based flat-rolled steelmaker announced Wednesday that is it looking into possible coal acquisitions to heighten its access to the commodity as well as mitigate the cost of production.
CSN sold its stake in Riversdale in April for US$830 million, gaining about US$400 million from the sale. But, as coal prices are expected to continue to rise throughout Q2, the lack of a wholly-owned source of the raw material could mean volatility in steel prices.
CSN reported net income of 616 million reais (US$384 million) in Q1 2011 Wednesday, which was a 37 percent increase over Q4 2010, and a 38 percent surge year-over-year.