After Brazilian Economy Minister Mr Paulo Guedes announced that Brazilian steelmakers had pledged not to raise steel prices until the end of the year, Brazil’s Steel Association Aço Brasil denied that the sector has made agreements in this regard, even if informally. Aço Brasil's president Mr Marco Pollo de Mello Lopes in an interview with Valor Econômico newspaper said July 15 that “Mr Guedes suggested a price lock due to fear of inflationary pressures and complaints from the civil construction sector. Due to compliance, competition and trade policies specific to each company, we could not sign this commitment. During the meetings with the minister it was mentioned that rising raw materials costs such as iron ore, scrap and met coal were the reason for the adjustments in steel prices in Brazil and in the world but have now showed some signs of stabilization. Steel supply in Brazil has balanced, with higher availability from local mills and a strong increase in imports. Brazilian steelmakers are operating near 75% of installed capacity and reducing exports.”

 

Valor Econômico newspaper report quoted Mr Guedes as saying that he was trying to reduce the imports tariff over certain undisclosed steel products to help several industry segments in Brazil. The minister said he would like to make this cut tomorrow but that some Mercosur ties would delay what he considered ideal, which would be a generalized drop in tariffs in the country, not just for steel. He added “An attempt to reduce the tariff from 12% to 10.8% for steel was blocked by Argentina.”

 

Year to date the Brazilian domestic rebar price has risen 37% and has increased 154% in the past 12 months

 

Companies associated with the Instituto Aço Brasil include

 

1. Aco Verde do Brasil

 

2. Aperam

 

3. ArcelorMittal

 

4. CSP

 

5. Gerdau

 

6. Sinobras

 

7. Ternium

 

8. Usiminas

 

9. Vallourec

 

10. Villares Metals

source：SteelGuru Business News