Shipments by Brazilian independent flat steel distributors and service centers in November increased 11.8% year on year to 293,200 mt, the most recent data from Inda, the national flat products distributors association, showed Tuesday.
However, shipments fell 7.7% compared with October, the data showed.
October’s domestic purchases rose 3.6% year on year to 280,000 mt, according to Inda, which added that the total was down 6.3% compared with October.
Flat product inventories amounted to 762,100 at the end of November, up 9% from the end of October, while the inventory-turnover average closed the most recent month at 2.6 months of supply, the data showed.
Inda expects shipments to decrease by 30% and and domestic purchases to increase 7% in December, it said.
According to Inda’s president Carlos Loureiro, it is expected a price increase on flat steel portfolio of 10% in early 2020.
“This one has conditions to be absorbed,” said Loureiro, opposing the attempt to 2019 when prices fell throughout the year despite several price rise attempts.
Loureiro also expects an increase of 5%-7% on automakers annual contracts, yet under ongoing negotiations.
— Jose Guerra
