Sales of flat steel products by Brazilian distributors reached 309,800 mt in March from 307,300 mt in February, according to the sector institute INDA.
Under the same comparative basis, purchases by the distributors chain declined by 5.0 percent to 304,900 mt, while the level of inventories declined by 0.5 percent to 903,000 mt, reaching the equivalent to 2.9 months of consumption, a level now considered as comfortable by the sector, considering the uncertainties derived from the recently approved system of quotas and higher import tax for steel products.
Imports in March increased by 29.3 percent from February, reaching 249,100 mt, including heavy plates, HRC, CRC, zinc coated, HDG, pre-painted and Galvalume.
In comparison to March 2023, sales declined by 16.3 percent, purchases declined by 15.5 percent, and imports increased by 49.1 percent.
For April 2024, expectations by INDA are for purchases and sales increasing by 7 percent from March.
Speaking in a conference with analysts, the president of Inda, Carlos Loureiro, mentioned that due to the system of quotas and higher import tax, the steel producers are not expected increase their prices, at least over the next two months.
He mentioned that the volatility of prices will increase, as importers are expected to clear customs of the stocks of steel products in the ports, in a volume estimated at 200,000 mt, to avoid paying the higher taxes.
Loureiro added that ongoing negotiations for the import of steel products have been halted, while the new measures are under evaluation.