The Brazilian longs producers announced price increases of 8-12% m/m valid from 1 July,following the movement that sheet products producers made in June. This price hike isbased on the Brazilian real depreciation as well as costs pressure. The weaker currencyincreases barriers for imports, which are 28% lower YTD (see chart), and give room for higherdomestic prices. In the meantime, Brazilian domestic electricity, scrap and pig iron prices areon the rise while freight costs increased by 30-50% after the truck drivers’ strike. Thus, steelproducers are passing these cost increases on to clients.
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