Improving civil construction activity to benefit CSN, says Goldman Sachs

Tuesday, 26 January 2021 01:45:31 (GMT+3)   |   Sao Paulo
       

Improving prospects for the civil construction and infrastructure segments in Brazil should benefit local steelmaker Companhia Siderurgica Nacional (CSN), according to a report by Goldman Sachs.

A media report by Valor Investe citing the bank’s report said an improved scenario for those segments should also increase cement and steel demand over the years. The report said CSN is confident it will generate a strong cash flow by selling stocks at its iron ore business, as reported by SteelOrbis.

Goldman Sachs said the IPO could help the steelmaker reduce debt to less than BRL 15 billion ($2.8 billion), from BRL 39.1 billion ($7 billion), according to Fitch Ratings’ latest credit rating review in November 2020.


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