Brazil’s flat steel sales fall 6.6% in September

Brazilian flat steel distributors and service centres saw sales drop by 6.6% month-on-month in September, reaching 353,800 tonnes, local association Inda said on Thursday October 25.

Paragraph entered by Atlantic migration, in order for SteelFirst articles to display correctly on Metal Bulletin.

Last month’s sales declined by 9.1% compared with those in September 2011, from 389,400 tonnes.

Inda members purchased 340,800 tonnes of flat steel products in August, down by 9.7% over the previous month, but an increase of 3.1% year-on-year.

Distributors’ inventories fell by 1.4% month-on-month in September, to 949,300 tonnes. This volume represents 2.7 months’-worth of sales, according to the association.

Shipments of heavy plate amounted to 36,900 tonnes in September, a decrease of 7% over the previous month, while distributors’ purchases dropped by 34%, to 38,000 tonnes.

Heavy plate inventory levels therefore increased to 4.9 months’-worth of sales.

Between January and September, flat sales from Inda members increased by only 0.7% year-on-year, to 3.25 million tonnes, while purchases totalled 3.2 million tonnes, up by 4.1%.

For October, Inda expects both flat steel sales and purchases to increase by about 12%.

The Brazilian flat steel industry has still to experience a challenging outlook in October, but inventory levels may decline on there being more working days, Barclays Capital analyst Leonardo Corrêa said in a report this week.

“The inventory-to-shipments ratio should decrease to below historical levels of 2.4 [months’-worth of sales],” he noted.

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
Proceed