Brazilian steel distributors expect decrease in 2003 sales

Brazilian steel distributors expect decrease in 2003 sales

Due to weak Brazilian economy, Brazilian steel distributors' sales are going to show a downward trend in 2003, according to Brazilian Steel Institute Inda. Inda's officials expressed that distributors revealed inadequate performance to invest in the economy, particularly in automotive, construction and machinery sectors in the first half of 2003. An increase in demand in the rest of 2003 is considered to take the sales of the country to last year's volume of 4.14 million tons. However, it seems that due to increased steel prices, consolidated sales revenue of distributors will remain stable at Real 5.9 billion (approx. $2 billion) in 2003. Flat products prices increased by 5-12% in the last four months due to one major steel producer. In Sao Paulo, average CIF prices to large industrial consumers are currently around Real 1'100 per ton (approx. $368 per ton) for hot rolled, Real 1'400 per ton (approx. $468 per ton) for cold rolled and Real 1'900 per ton (approx. $635 per ton) for zinc coated. Due to weak demand from civil construction, rebar prices remained stable at Real 1'720 per ton (approx. $574 per ton).