Investment firm Morgan Stanley expects Brazilian steelmakers Companhia Siderurgica Nacional (CSN), Gerdau and Usiminas to post weaker net profit results in Q4, on a quarter-over-quarter basis.
According to a media report by MoneyTimes, the steelmakers should see their net profit results decline when compared to Q3 2021 due to weaker realized iron ore prices. The steelmakers are expected to post their Q4 2021 results in February.
“We expect steelmakers’ margins to decline in Q4, in some cases, below the actual consensus, since realized prices diminished while cost pressure increased,” said analysts Carlos de Alba, Jens Spiess and Ricardo Monegaglia Neto.
Despite weaker quarter-over-quarter net profit results, Morgan Stanley sees resilient results for the three steelmakers. Morgan Stanley noted Brazilian steelmakers increased steel prices between 50 percent and 70 percent.