Brazilian steel producer CSN informed its clients that it will increase the price of its products by 10 percent, effective from April 1.
The increase will cover all its product lines, including flats and longs, with the only exception of tinplate.
Earlier this week, Carlos Loureiro, the president of the local steel distributors association INDA, mentioned that the price of HRC in the Brazilian domestic market currently has no premium in relation to the imported product, adding that in some cases even a “negative” premium was identified.
Under usual conditions, such premium is around 10 percent, considering the price of the imported product after clearing customs in Brazil.
According to sources, CSN could initially face difficulties in the implementation of the higher prices for sales to the distribution chain, as the sector already has stocks sufficient for 2.8 months of sales, time considered as sufficient to find alternative sources abroad.