Brazilian steel distributors sold 335,800 metric tons of steel products in September, up 1,700 tons from August. Inventories barely changed and remain above the industry benchmark, according to the Brazilian steel distributors’ institute, INDA.
INDA members’ purchases fell 1.9% month on month to 333,700 tons. Inventories slipped 0.2% to 1.18 million tons, equivalent to 3.5 months of sales. That was unchanged from August and above the comfortable level of 2.8 months.
Steel imports jumped 34.3% in September to 266,000 tons. Year on year, sales fell 7.2% and purchases declined 7.3%, while imports rose 10.2%. INDA expects sales and purchases to remain at September levels in October.
INDA president Carlos Loureiro told analysts on a conference call that imports of steel-intensive goods, including cars, machinery and equipment, are among the factors weighing on demand for flat steel in Brazil. Supplies from China are particularly significant, he said, reducing demand for domestically produced steel and hindering a recovery in distributor sales.
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