Brazilian CST raises sales in Q1

Brazilian CST raises sales in Q1

Brazilian Companhia Siderúrgica de Tubarão (CST) reported its net sales as Reals 993 million (approx.$342 million) for the first quarter of 2003 with a 126% increase when compared to the same period last year while its net income has reached to Real 273 million. The company's production and shipments have reached to 234'000 tons and 201'000 tons respectively in the first quarter. Most of the output has been purchased by the domestic market. The hot strip mill coils are being shipped to Europe, Asia, North America and South America. Furthermore, Vega do Sol, the CST galvanising plant aims to increase its output. The mill has a target of 80'000 tons galvanised production this year. Also CST is planning to operate the full capacity of 400'000 tons of galvanised products and 300'000 tons of cold rolled coils by the end of 2004. Similar to previous year, the slab production continue to stabilize at 1.2 million tons while slab sales volume decreased by 12% to 1 million tons. CST posted its average slab price as $229 per ton for the first quarter of 2003 with a 48% increase compared to same period of 2002. On the other hand, slab prices decreased by $20 per ton according to fourth quarter of last year. CST is planning to increase the slab prices slowly in the second quarter according to its mill operating capacity.