Sales of flat steel products by Brazilian distributors increased to 340,000 mt in October, from 323,300 mt in September, according to the sector institute INDA.
Under the same comparative basis, purchases by the distributors chain increased by 9.1 percent to 352,300 mt, while the level of inventories increased by 1.5 percent to 855,700 mt, reaching the equivalent to 2.5 months of consumption, a level considered as comfortable when compared to the historical average of 3.0 months of consumption.
Imports in October declined by 34.0 percent from September, reaching 204,600 mt, including heavy plates, HRC, CRC, zinc coated, HDG, pre-painted and Galvalume.
According to INDA, expectations for November point to purchases and sales declining by 4.5 percent from October.
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 the imported product after clearing customs, is now in a range of 14 to 15 percent, against 14 to 16 percent one month ago, remaining higher than the historical level of 10 percent, although reduced from peaks of 35 percent achieved during recent months.
Loureiro mentioned that the request by the Brazilian steel industry to impose a 25 percent import tax on all steel products is now in the hands of the country’s president, after negotiations with the foreign trade authorities.
According to analysts, the request is not likely to be approved in the short term, as steel imports are declining, and there is a strong pressure from the industrial sectors, consumers of steel products, which claim that steel producers will increase their prices, soon after the import tax is approved.
Prices of steel products in the Brazilian domestic market are considered to stand among the highest in world terms.