RIO DE JANEIRO--Brazilian steelmaker Companhia Siderurgica
Nacional SA (CSNA5.BR, SID), or CSN, will raise domestic prices for
flat steel products by 4% to 7% on Sept. 1, Brazilian Steel
Distributors' Institute Inda confirmed Monday.
The rise will be effective on CSN's sales of steel to Brazilian
distributors, Inda said.
CSN's expected price increase would follow similar moves by its
domestic competitors in July. At that time, steelmakers Usinas
Siderurgicas de Minas Gerais SA (USIM5.BR), or Usiminas, and
ArcelorMittal Brasil (MT) announced price increases of 5% to 8%,
Inda said.
A CSN spokeswoman didn't confirm any expected price rise when
contacted by Dow Jones Newswires on Monday.
Analysts at Barclays Capital said Monday they consider there is
limited potential for CSN to implement its intended flat steel
prices rises. The hike may only be applicable to a few product
lines as Brazilian market prices are still capped by downward price
trends in the Chinese and global steel markets, Barclays said in a
research report.
While all the Brazilian flat steel mills have now asked for
higher prices, "only time will tell if the higher prices are
sustainable" in current market conditions, said Christiano da Cunha
Freire, president of Sao Paulo-based distribution company Frefer
Metal Plus - Klockner & Co.
Write to Diana Kinch at diana.kinch@dowjones.com
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