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Auto sector could be main recovery driver for Brazilian steel demand - S&P Global Ratings

Steel News - Published on Mon, 08 Apr 2019

Image Source: Landor
Diego Ocampo, senior director and sector specialist, Hard Industries Latin America, at S&P Global Ratings, said that the automotive sector could be the main driver of any recovery in steel demand in Brazil if the construction sector does not pick up. He told "We view the automotive market positively, and it may be one of the drivers, if not the main one, for any recovery in Brazilian steel demand,”

According to Ocampo, the question is when infrastructure and construction consumption will resume in earnest, relying so much as it does on the political situation in the country, given the continued uncertainty in Brazil. He said "There's no sign of an infrastructure pick up. However, home building and car production are improving slightly. At the same time, the investment perspective is not very positive in the short run in South America. We do not regard the prospects of Argentina positively, as it has been constantly hit by economic crisis, while Chile is a small market. Brazil is still waiting on a recovery to boost its demand.”

Ocampo said that since early 2015 domestic Brazilian prices have tracked international prices more closely, which kept a lid on imports.

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Posted By : Sanju Moirangthem on Mon, 08 Apr 2019
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