Usiminas sees Brazil domestic steel price premium unsustainable
SAO PAULO, April 20 Higher domestic steel prices in Brazil are unsustainable in the medium and long term, and could entice imports of the commodity that could impact margins for local mills, executives at Usinas Siderúrgicas de Minas Gerais SA said on Thursday.
In a conference call to discuss first-quarter results, the executives said Usiminas, as Brazil's No. 1 listed producer of flat steel products is known, said that international steel prices are expected to rise in coming months. The so-called premium, or the difference between steel prices practiced in Brazil and abroad, is currently between 20 percent and 30 percent, they said. (Reporting by Guillermo Parra-Bernal and Alberto Alerigi Jr)