Ibovespa Falls for Fourth Day as Drop in Metals Saps Steelmaker

The Ibovespa slumped for a fourth day, its longest losing streak since November, as steelmaker Cia. Siderurgica Nacional SA led losses among commodities producers after metal prices dropped.

Iron ore producer Vale SA (VALE5) contributed the most to the index’s slump. The MSCI Brazil/Materials index was the worst performer among 10 industry groups. Homebuilder MRV Engenharia e Participacoes SA rose after saying in a regulatory filing that it started projects worth 1.34 billion reais ($566 million) in the fourth quarter, double the figure a year earlier.

The Ibovespa fell 0.3 percent to 48,583.74 at 10:47 a.m. in Sao Paulo, the lowest closing level since August. The real weakened 0.9 percent to 2.3646 per U.S. dollar. The Bloomberg Base Metals 3-Month Price Commodity Index sank 0.4 percent after data showed copper imports in China, Brazil’s top trading partner, fell in December.

“Investors seem worried about a deeper slowdown in China,” Pedro Galdi, the head strategist at SLW Corretora in Sao Paulo, said in a phone interview. “Every little thing that happens in China has a big impact on Brazil, which depends a lot on commodities exports.”

MRV added 1.6 percent to 8.53 reais. CSN, as Cia. Siderurgica is known, sank 2.1 percent to 13.40 reais. Vale slipped 1.3 percent to 28.78 reais.

To contact the reporter on this story: Ney Hayashi in Sao Paulo at ncruz4@bloomberg.net

To contact the editor responsible for this story: Brendan Walsh at bwalsh8@bloomberg.net

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