{"id":632050,"date":"2022-12-28T14:16:01","date_gmt":"2022-12-28T14:16:01","guid":{"rendered":"https:\/\/www.abnewswire.com\/pressreleases\/?p=632050"},"modified":"2022-12-28T14:16:01","modified_gmt":"2022-12-28T14:16:01","slug":"low-steel-purchases-inventories-limit-brazilian-yearend-discounts-but-2023-price-hikes-loom","status":"publish","type":"post","link":"https:\/\/www.abnewswire.com\/pressreleases\/low-steel-purchases-inventories-limit-brazilian-yearend-discounts-but-2023-price-hikes-loom_632050.html","title":{"rendered":"Low Steel Purchases, Inventories Limit Brazilian Year-End Discounts, But 2023 Price Hikes Loom"},"content":{"rendered":"
Consumers’ low steel purchases and inventories in Brazil are preventing a wave of end-of-year discounts and supporting the announcement of increases for early 2023, sources said.<\/div>\n

Consumers’ low steel purchases<\/a> and inventories in Brazil are preventing a wave of end-of-year discounts and supporting the announcement of increases for early 2023, sources said.<\/p>\n

“I believe prices went down enough for 2022,” said a flat steel distributor source, who already received price hikes announcements for the start of 2023.<\/p>\n

In the survey of Brazilian producers, distributors, traders, and end-users, about 50% of respondents to the monthly sentiment survey of the Brazilian steel industry the S&P Global Commodity Insights carried out said prices could remain rangebound in December, while 34% of respondents were seeing potential discounts to expedite trade.<\/p>\n

The price index reading was at 54.6, up 2.81 points from November. Readings above 50 are generally interpreted as bullish and below 50 bearish, with a reading of 50 suggesting no change in sentiment<\/p>\n

Brazilian domestic hot-rolled-coil prices<\/a> plunged 33.6% to Real 4,450\/mt ($836.47\/MT) ex-works Dec. 9 from the 2022 peak of Real 6,700\/mt EXW in May, according to Platts assessments.<\/p>\n

For rebar, domestic prices retreated 15.7% in the same period to Real 4,300\/mt EXW.<\/p>\n

In a Dec. 15 meeting with investors, Brazil’s CSN confirmed a 10% price hike on flats and longs prices effective Jan. 1 to keep an import parity premium of 12%.<\/p>\n

Other steelmakers were reportedly targeting price adjustments of 5%-10%, sources said.<\/p>\n

“Demand is pretty weak, but inventories are too low…so, if demand picks up just a bit, the chain will be forced to restock, thus giving room for price hikes,” another distributor said.<\/p>\n

Market sentiment is that there is a more favorable outlook for the long steel segment, with works still running in the country and the prospect of new infrastructure projects and expansion of social housing programs.<\/p>\n

Brazil’s civil construction sector is expected to grow 2.5% in 2023, after recording a growth of 17.7% in the 2021-2022 biennium, according to CBIC, the national chamber of the construction industry.<\/p>\n

“The automotive industry, on the other hand, seems to have already hit rock bottom. Yellow goods and agribusiness should remain strong, but [the] white line is still a question mark,” said Luiz Fernando Martinez, CSN’s commercial director.<\/p>\n

Out of the monthly survey, views on inventory levels were with a majority of 67% of the respondents expecting stability through December at lower levels. The inventory index reading was at 56, a drop of 2.53 points from the previous month.<\/p>\n

“I’m buying only the necessary; there’s much uncertainty to incentivize purchases at this point, plus the year-end seasonal lull,” one steel consumer said.<\/p>\n

The views regarding prices of domestic and imported raw materials were mixed for December, depending on the product, with 47% of the respondents expecting stability, 33% seeing additional declines in scrap and pig iron, and 20% expecting met coal\/coke prices to keep at elevated levels. The overall index was at 57.33, up 3.19 points from November.<\/p>\n

Regarding steel production<\/a>, 65% of the participants predict stability in the volumes to be produced in the last month of the year. But 33% of respondents signaled possible reductions for the month. The index reading was at 56, down 2.52 from the previous month.<\/p>\n

original source: https:\/\/www.win-road.com\/news\/low-steel-purchases-inventories-limit-brazilian-year-end-discounts-but-2023-price-hikes-loom\/<\/a><\/p>\n

Media Contact<\/span>
Company Name:<\/strong> Win Road International Trading Co., Ltd.<\/a>
Email:<\/strong> Send Email<\/a>
Phone:<\/strong> +86-13821256534
Country:<\/strong> China
Website:<\/strong> https:\/\/www.win-road.com\/<\/a><\/p>\n

<\/object>\"\"<\/p>\n","protected":false},"excerpt":{"rendered":"

Consumers’ low steel purchases and inventories in Brazil are preventing a wave of end-of-year discounts and supporting the announcement of increases for early 2023, sources said. Consumers’ low steel purchases and inventories in Brazil are preventing a wave of end-of-year … Continue reading →<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[418,410,412,420,411],"tags":[],"class_list":["post-632050","post","type-post","status-publish","format-standard","hentry","category-Building-Construction","category-Manufacturing-Industry","category-News-Current-Affairs","category-Science","category-Technology"],"_links":{"self":[{"href":"https:\/\/www.abnewswire.com\/pressreleases\/wp-json\/wp\/v2\/posts\/632050","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.abnewswire.com\/pressreleases\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.abnewswire.com\/pressreleases\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.abnewswire.com\/pressreleases\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.abnewswire.com\/pressreleases\/wp-json\/wp\/v2\/comments?post=632050"}],"version-history":[{"count":0,"href":"https:\/\/www.abnewswire.com\/pressreleases\/wp-json\/wp\/v2\/posts\/632050\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.abnewswire.com\/pressreleases\/wp-json\/wp\/v2\/media?parent=632050"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.abnewswire.com\/pressreleases\/wp-json\/wp\/v2\/categories?post=632050"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.abnewswire.com\/pressreleases\/wp-json\/wp\/v2\/tags?post=632050"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}