CSN to post strong Q3 results, says Safra

Thursday, 15 October 2020 19:11:20 (GMT+3)   |   Sao Paulo

Brazilian steelmaker Companhia Siderurgica Nacional (CSN) is expected to post strong Q3 results, according to analysts from Bank Safra in Brazil.

Analysts Conrado Vegner and Victor Chen said the steelmaker should take advantage of “a resilient iron ore market” and an improving domestic environment for steel, which should result in “appreciated steel prices.”

The analysts forecasted iron ore prices to increase by 17 percent in Q3, as compared to now, and estimated Brazilian steel sales volumes in Q3 should increase 10 percent, quarter-over-quarter, due to stronger domestic steel sales.

“Steel prices should increase by 5 percent as compared with Q2 2020, reflecting new price hikes implemented in July,” the analysts said.

CSN is also expected to make the IPO of its mining business, whose cash is expected to cut the company’s debt.

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