Brazilian steelmakers lost a combined BRL 9 billion ($2.4 billion) in market value at the nation’s stock exchange B3, local newspaper Valor said this week.
According to Valor, the steelmakers were severely hit by a massive strike by Brazilian truck drivers, who have blocked roads in most states, restricting shipments of fuels steel and other goods. Since May 21, there has been a fuel shortage at most gas stations in the country.
Brazil’s president Michel Temer agreed to reduce diesel prices in a move to end the massive strike. Fuel supply is expected to resume in the next few days.
Local steelmakers Gerdau, Companhia Siderurgica Nacional (CSN) and flats producer Usiminas lost, on average, 20 percent of their market value since May 21, according to Valor’s data. Brazil’s flat distributors association, Inda, said over half of its distributors stopped selling steel due to the lack of fuels. Several automakers based in Brazil, including Fiat, Ford and General Motors stopped producing certain vehicle models.
This week, Brazil’s CSN temporarily dismissed administrative workers at its Presidente Prudente mill following the strike and due to the lack of fuel. Steel output was not affected.
Usiminas has reportedly halted output at its No. 1 blast furnace located at its Ipatinga mill, located in the city of same name in the state of Minas Gerais, according to a local union.
Brazilian miner Vale said the impact of the strike has been limited in Vale’s operations. However, if the nation-wide strike continues, it would affect the miner’s commodity production.