Sales of flat steel products by the Brazilian distributors have reached 296,800 mt in November, 15.1 percent less than in October, according to the sector institute, INDA.
On a comparative basis, acquisitions by the distributors chain linked to INDA declined by 17.1 percent to 195,600 mt, while the level of inventories declined by 0.1 percent to 981,100 mt, reaching the equivalent to 3.3 months of consumption, a level considered as “not comfortable” by the sector.
Imports in November declined from October by 25.4 percent, reaching 206,100 mt, including heavy plates, HRC, CRC, zinc coated, HDG, pre-painted, and Galvalume.
The sharp decline of imports reflects the devaluation of the BRL against the USD, as importers are postponing clearing customs procedures in the hope of a more favorable exchange rate in the future.
In comparison, November 2023 sales declined by 9.6 percent, acquisitions declined by 13.5 percent, and imports declined by 2.8 percent.
For December 2024, expectations by INDA are for acquisitions and sales declining by 5.0 percent from November.
Speaking in a conference with analysts, the president of Inda, Carlos Loureiro, mentioned that the scenario for 2025 is nebulous due to uncertainties related to interest rates, as some financial institutions have warned that it could reach up to 15 percent per year which could negatively affect sales in a wide range of markets.