High demand in Brazil has caused HR steel shortage
Sources report that strong demand from
automotive and
shipbuilding industries has caused shortage of hot rolled flat products in
Brazil.
Statistics indicate that distributor's inventory levels of hot rolled coil and heavy
plate have decreased by 30% in the first six months of 2004.
The fact that Brazilian steel mills have redirected their interest from crude steel to
galvanized sheet for
construction and
automotive industries and the fact that export prices are higher than domestic prices are indicated as the two main reasons for the decrease in inventory levels.