According to INDA, the Brazilian steel distributors' institute, its member distributors sold 335,800 metric tons (mt) of steel products during September, up from 334,100 mt in August.
Purchases by INDA members fell 1.9 percent month on month to 333,700 mt, and while inventories edged down 0.2 percent to 1.180 million mt, totals still remain robust with stocks reported at 3.5 months of sales, unchanged from August and still well above the sector's 2.8-month “comfort benchmark.”
Imports surged 34.3 percent in September to 266,000 mt, covering heavy plate, HRC, CRC, zinc-coated, HDG, pre-painted, and Galvalume steel products.
Year on year, September sales fell 7.2 percent, while purchases declined 7.3 percent and imports increased 10.2 percent.
INDA expects purchases and sales to remain flat in October compared with September.
Speaking on a conference call with analysts, INDA president Carlos Loureiro said imports of steel-intensive goods, such as automobiles, machinery, and equipment, are among the main factors pressuring Brazil's flat steel market.
The influx of these goods, particularly those originating from China, has reduced demand for domestically produced steel and hindered a recovery in distributor sales, he said.
