Sales of flat steel products by Brazilian distributors increased to 312,000 mt, in May, from 302,700 mt in April, according to the sector institute INDA.
Acquisitions by the distributors chain increased to 366,700 mt in May from 250,100 mt in April, resulting in an increase of inventories to 776,400 mt in May from 721,800 mt in April.
The current level of inventories is equivalent to 2.5 months of sales, a level considered as safe in historical terms.
Imports in May have reached 140,600 mt, against 108,900 mt in April. Such import figures include heavy plates, HRC, CRC, zinc coated, HDG, pre-painted and Galvalume.
According to INDA, expectations for June are for flat steel distributor purchases declining by 10 percent from May and sales declining by 5 percent, reducing the current level of inventories.
According to Inda’s president Carlos Loureiro, the price of HRC in the Brazilian domestic market is 19 percent higher in relation to international prices of the product.
He added that despite such high premium, imports of the product remain unattractive due to the high uncertainties derived from exchange rate variations and the fluctuation of prices of steel products in international markets.