The Brazilian steel industry should continue its momentum for the next few quarters, according to analysts at BTG Pactual.
Analysts said Brazilian economy should continue to grow at the same time local steelmakers have a steady demand and orders to fill for at least the next three months. Additionally, the local supply chain is reportedly at weak levels, according to a media report from MoneyTimes.
Analysts said investors should likely get more confident about the Brazilian steel sector, as domestic steelmakers post stronger results.
Brazilian flats steelmaker Usiminas went from a net loss of BRL 424 million ($84.1 million) in Q1 2020 to post a net profit of BRL 1.20 billion ($238.2 million) in Q1 this year.
Companhia Siderurgica Nacional (CSN) and integrated steelmaker Gerdau also posted stronger Q1 results, as reported by SteelOrbis.