Sales of flat steel products by Brazilian distributors increased to 310,200 mt in July from 284,600 mt in June, according to the sector institute INDA.
Under the same comparative basis, purchases by the distributors chain increased by 2.8 percent to 301,800 mt, while the level of inventories declined by 1.0 percent to 841,600 mt, reaching the equivalent to 2.7 months of consumption, against 3.0 months in June, a level considered as comfortable, when compared to the historical average of 3.0 months of consumption.
Imports in July increased by 0.5 percent from June, reaching 202,200 mt, including heavy plates, HRC, CRC, zinc coated, HDG, pre-painted and Galvalume.
According to INDA, expectations for August are for purchases and sales increasing by 4 percent from July.
Speaking in a conference with analysts, the president of Inda, Carlos Loureiro, mentioned that the current price premium of steel products in the Brazilian domestic market, when compared to the imported product after clearing customs, is now in a range of 18 to 20 percent, against 30 percent one month ago, in a decline ascribed to competition from imported products.
He mentioned that an increase of prices in September, as suggested by the steel producer CSN, is not feasible under the current conditions of the market, with low demand from consumers and strong offer of imported products.
During the first seven months of 2023, the Brazilian imports of flat steel products increased on yearly basis by 35.9 percent to 1.25 million mt.