Brazil may be one of the few to reap benefits from Chinese market slowdown, especially regarding steel. This observation was publically announced at an event held by Inda, Brazil’s Institute of Steel Distributors, as 80% of the steel imported by Brazil comes from China, and a drop in Chinese output could lead to increased participation from the domestic market. During the event, Miguel Holmes, commercial vice president at Usiminas, highlighted that Latin American importers produce lower volumes and benefit from lower margins than Chinese steel producers, making them the first to be affected. “As a result of more limited competition, domestic producers could increase their market share,” he says. Regarding steel inventories, Inda projects that they will sustain themselves for around 2.6 months this year.
Sources: Mais Retorno/Datamar News