Latest market developments in South America

Latest market developments in South America

South American markets have been pretty quiet over the seasonal holidays period and not a lot of activity has been observed. The Venezuelan steel maker Sidor has been in trouble and losing serious production quantity because of the strikes and the unrest in the country. SteelOrbis has been told that the mill has not been able to find gas supply for a while. Even though the supply has been reinstated; it is not even covering half of the actual requirement. The new President has taken over the post in Brazil and reportedly gaining confidence of the international business community. New foreign investment has started to come to Brazil, and the Real started to appreciate against the USD. In a months time the appreciation of Real has been more than 10%. These are all good news for the steel industry in Brazil along with the projects of the new President which also include a huge housing project for more than 50 million Brazilians. It is also good news in Chile, as the confidence in the administration is increasing. The Government has obtained support as a result of a consensus in the country as regards the growth policies proposed. Interest rates are dropping and it is widely believed that the short term will be good for Chilean economy in terms of investments and construction.