Sales of flat steel products by the Brazilian distributors have reached 345,700 mt in April, 7.2 percent more than in March, according to the sector institute INDA.
Under the same comparative basis, acquisitions by the distributors chain increased by 13.4 percent to 345,700 mt, while the level of inventories increased by 1.5 percent to 916,700 mt, reaching the equivalent to 2.8 months of consumption, a level considered as comfortable by the sector, considering the uncertainties derived from the recently approved system of quotas and higher import tax for steel products.
Imports in April declined from March by 2.3 percent, reaching 242,300 mt, including heavy plates, HRC, CRC, zinc coated, HDG, pre-painted and Galvalume.
In comparison to April 2023, sales increased by 10.3 percent, acquisitions increased by 8.7 percent, and imports increased by 50.5 percent.
For May 2024, expectations by INDA are for acquisitions and sales increasing by 3.5 percent from April.
Speaking in a conference with analysts, the president of Inda, Carlos Loureiro, mentioned that a scenario of uncertainties persists in relation to the system of quotas and higher import tax for steel products.
In his view, the steel producers are not expected to increase prices in the short term, while importers are not negotiating fresh deals, but imports are set to increase, reflecting material in ports clearing customs to avoid the payment of higher import taxes.