Sales of flat steel products by Brazilian distributors declined to 328,200 mt in November, from 340,000 mt in October, according to the sector institute INDA.
Under the same comparative basis, purchases by the distributors chain declined by 3.0 percent to 341,600 mt, while the level of inventories increased by 1.6 percent to 869,100 mt, reaching the equivalent to 2.6 months of consumption, a level still considered as comfortable, when compared to the historical average of 3.0 months of consumption.
Imports in November increased by 3.6 percent from October, reaching 212,000 mt, including heavy plates, HRC, CRC, zinc coated, HDG, pre-painted and Galvalume.
According to INDA, expectations for December point to purchases and sales declining by 15 percent from November.
Speaking in a conference with analysts, the president of INDA, Carlos Loureiro, mentioned that the price premium of HRC in the Brazilian domestic market, when compared to a similar imported product after clearing customs, is now in a range of 10 to 11 percent, against 14 to 15 percent one month ago.
Loureiro mentioned that there are perspectives for a small rise of steel product prices in the first quarter of 2024, as the market usually accepts a premium of up to 15 percent in the domestic market, in relation to the price of similar imported product after clearing customs.
In his view, only when the premium exceeds 15 percent, steel consumers are encouraged to close import deals.
He added that the request by the Brazilian steel industry, to impose a 25 percent import tax on all steel products, is no longer an urgent issue, as such imports are beginning to show a downward trend.