Brazilian flats steelmaker Usiminas expects a “slight” improvement of domestic demand for steel in H2 when compared to H1, the company said late last week while commenting its Q2 results.
Brazil’s economy has stopped falling and there are “soft” signs of recovery, said the company’s CEO, Sergio Leite, who did not provide further details about those signs.
Leite said Usiminas is currently “evaluating” its operations at its Cubatao and Ipatinga mills in the cities of same name in the states of Sao Paulo and Minas Gerais, so Usiminas could obtain a better performance at those assets.
A Nippon Steel executive said Usiminas could split those assets as a way to end on-going legal fights involving major shareholders Nippon Steel and Ternium.
Ronald Seckelmann, Usiminas’ financial director, estimated Usiminas should invest some BRL 300 million in 2016 and some BRL 350 million in 2017.
As for Q3 this year, Usiminas expects to benefit from already applied adjustment in steel prices for industrial clients between June and July this year. Usiminas’ commercial director, Ascanio Silva, said weak domestic demand and currency oscillations made steel imports less attractive.
Usiminas also said its financial results should be “better” in Q3, despite not providing any figures or estimates.
Market analysts said recently announced AD duties should disincentive steel imports.