Analysts see Usiminas and CSN to benefit from import tariffs
Wednesday, 10 Jun 2009
BNamericas quoted Mr Pedro Galdi brokerage analyst at SLW as saying that Usiminas and CSN stand to benefit the most from the start of new tariffs on steel imports.
Mr Galdi said that the government aims to raise barriers of entry mainly for flat steels, which are Usiminas' and CSN's strongest area. He added that "The most affected were hot and cold rolled coils used mostly in automobile production."
Currently in Brazil, hot rolled coils cost around BRR 1,700 per tonne, while internationally the same products are going for about USD 400 to USD 450 per tonne.
Mr Luciana Leocadio analyst of Ativa brokerage also viewed the new tariffs as positive for local steelmakers. He said that "Contrary to what we expected, the government stepped up and accepted the demands of steelmakers."
