Usiminas sees steel prices recovery in US and Europe
Saturday, 24 Oct 2009
Reuters reported that Usiminas sees a recovery of pricing in the United States and Europe as the global economy begins to slowly recover from its worst recession in decades.
Mr Marco Antonio Castello Branco CEO of Usiminas said that the last of the three blast furnaces of the Ipatinga plant would remain idle until next year. The company is in no hurry" to restart it before a sustained recovery. He added that "We might restart it only next year, until the signs of recovery come clearer."
It may be noted that the company restarted two of its blast furnaces in July at its Ipatinga and Cubatao production areas in Sao Paulo after idling them earlier.
Two senior executives said that Usiminas, which exports a large portion of its steel, is concerned about persistent gains in Brazil's currency BRL. They added that "We identify as risks the strengthening of the real and the possibility that prices remain somehow depressed for a while longer."
