Brazilian steelmaker Companhia Siderurgica Nacional (CSN) could increase both domestic sales and exports of steel, as China is set to reduce steel production. According to a media report by Valor, China is limiting both steel production and exports, which might give room for Brazilian steelmakers like CSN.
Citing analysts from Bank of America (BoA), the media report said CSN could see increased steel exports and domestic sales in Brazil. The BoA analysts said Brazilian domestic steel demand is healthy, despite describing it as being back to its standard conditions.
BoA said current market dynamics in Brazil could sustain and even give room for hikes in Brazilian long steel prices.
“Among steelmakers, we prefer long steel over flats, since we expect civil construction demand will be relatively more favorable regarding auto production,” the BoA analysts wrote.