In a conference with analysts last week, the commercial director of the Brazilian steel producer Usiminas, Miguel Camejo, announced a price increase in a range of 5 to 7 percent for its products in the domestic market.
According to Camejo, the net loss of the company, BRL 100 million ($17.8 million) in Q2 2024, reflects the 12 percent evaluation of the US Dollar in relation to the Brazilian Real, as 60 percent of its production costs are denominated in the US currency, including coal, coke, iron ore, and outsourced slabs.
He mentioned that the company has already increased prices for half of the contracts with its industrial clients, excluding the auto industry, by a range of 3 to 5 percent for the supply in Q3 2024, while the other half of the contracts will have the prices increased by the same range during Q4 2024.
During the conference, the CEO, Marcelo Chara, mentioned that the gains of productivity derived from the restart of the Blast Furnace number three will allow for the increase of production to feed the rolling activities of the Cubatão plant with steel produced in Ipatinga.
Since the stoppage of the crude steel production of Cubatão in 2026, the plant, located in the state of São Paulo, became dependent on outsourced slabs to feed its rolling activities.
USD = BRL 5.63 (29 July 2024)