Sales of flat steel products by Brazilian distributors declined to 293,500 mt in June from 331,000 mt in May, according to the sector institute INDA.
Under the same comparative basis, purchases by the distribution chain declined by 17.2 percent to 293,500 mt, while the level of inventories increased by 1.1 percent to 850,000 mt, reaching the equivalent to 3.0 months of consumption, against 2.5 months in May, a level still considered as comfortable when compared to the historical average of 3.0 months of consumption.
Imports of flat steel products by distributors increased by 5.7 percent in June compared to May, reaching 201,300 mt, including heavy plates, HRC, CRC, zinc coated, HDG, pre-painted and Galvalume.
According to INDA, expectations for July are for purchases and sales increasing by 3 percent from June.
Speaking in a conference with analysts, the president of Inda, Carlos Loureiro, mentioned that the current price premium of steel products in the Brazilian domestic market, when compared to the imported product after clearing customs, remains at 30 percent, the highest figure in recent years.
He mentioned that, considering the four to five months, after the purchase order, that a steel import takes for reaching the Brazilian ports, coupled to the current high level of stocks of steel products in the Brazilian ports waiting to clear customs, it is estimated that, if the steel producers decide now to reduce their premium to a historical level, around 10 percent, the Brazilian imports of steel products would only start to decline during the first quarter of 2024.
During the first half of 2023, the Brazilian imports of steel products increased on yearly basis by 29.4 percent to 1.051 million mt.