With the announcement that Usiminas is increasing its prices by 10 percent this week, other Brazilian flat steel producers have announced new higher prices.
CSN had previously announced price increase of 10.5 percent, ArcelorMittal by a range of 8 percent to 10 percent and Gerdau by 10 percent, all effective this week.
The producers claim that the devaluation of the BRL vis-à-vis the US dollar was the main factor for the increase, as iron ore, despite supplied locally, is traded with the dollar as reference, while the coal used by the steel producers is all imported.
The producers also claimed that the Brazilian steel products were sold locally at a discount from the imported product.
It is not clear if the increase will be accepted by consumers, due to sharp decline of the demand resulting from the Covid-19 pandemic.