Brazilian Steel Outlook Deteriorates on Prices, HSBC Says

The Brazilian steel industry’s outlook is deteriorating because of increased inventories and a potential decline in domestic prices, HSBC Holdings Plc said in a note to clients today.

“There could be pressure on domestic steel prices as global steel prices have fallen,” Jonathan Brandt, an HSBC analyst in New York, said in the note. “The Brazilian real remains strong and domestic steel prices are already at a 7 percent to 10 percent premium to imported product.”

Flat-steel inventories in Brazil have increased for two consecutive months to the equivalent of a more-than-expected 3.5 months of sales, Brandt said.

HSBC was expecting inventories to return to a “historical level” of between 2.5 months and 2.8 months of sales, he said.

To contact the reporter on this story: Juan Pablo Spinetto in Rio de Janeiro at

To contact the editor responsible for this story: Dale Crofts at

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.