Brazilian steel and iron ore producer Usiminas reported a net loss of BRL 166 million ($33 million) for Q3 2023, against a net profit of BRL 287 million in the previous quarter.
The company ascribed the negative result to lower domestic steel prices, reflecting the competition from steel imports, chiefly those from China at alleged dumping prices.
Net sales revenues declined by 3 percent to BRL 6.71 billion and the costs of the products sold increased by 4 percent to 6.54 billion, resulting in a gross profit declining by 70 percent to BRL 175 million.
Even with operational expenses declining by 7 percent to BRL 420 million, the company had an operational loss of BRL 244.7 million, against an operational profit of BRL 130.4 million in the previous quarter.
By volume, steel sales increased by 5 percent to 1.021 million mt, of which 931,000 mt sold domestically and 90,000 mt exported.
Iron ore sales were stable at 2.390 million mt of iron ore, of which 1.753 mt exported, 215,000 mt sold for its own consumption and 422,000 mt sold to other companies in Brazil.
According to the company, 674,000 mt of purchased slabs were processed during Q3 2023, against 586,000 mt during the previous quarter, while the largest blast furnace at its Ipatinga plant remains under revamping. Its restart is now expected for November 2023.
USD = BRL 5.02 (October 30)
