Reflecting the reduced demand from clients in the distributors chain, Brazilian steel producers have decided to postpone previously-announced increases of prices, in the range of 5 percent to 8 percent.
As previously reported by SteelOrbis, in April the sales of flat products by the distribution chain declined from March by 21 percent to 302,700 mt, and another decline in May, about to be announced, is expected to reach more than 5 percent.
The sharp decline in international prices of steel products has also played a role in the decision for postponement, as Brazilian domestic prices for flat steel products were ranging between premium of 25 percent and 35 percent, when compared to similar imported products after clearing customs, raising fears of a surge in imports of flat products.
When considering flat and long products, the apparent consumption during the January-April period of 2022 has declined by 14 percent from the same period of 2021.