Brazil’s flat steel distribution chain was reportedly affected by a nationwide strike organized by truck drivers, according to a media report from Valor.
Local steel distributors association Inda said the strike has delayed steel shipments, and Sao Paulo state steel distributors may see their revenues decline between 40 to 60 percent per day due to the strike.
Truck drivers reportedly went on strike to demand that the Brazilian government reduce diesel prices. In the past, Brazil had artificially controlled fuel prices by forcing state-run oil producer Petrobras to reduce prices in an attempt to manage inflation. Following losses and a large corruption scandal, Petrobras changed its pricing policy and promised to follow global oil prices.
Oil prices have increased recently, so Petrobras decided to hike diesel prices.