Brazilian steel prices are expected to be unchanged in October and for the remainder of 2023, according to 44% of the respondents part of the S&P Global Commodity Insights monthly steel sentiment survey.
Brazilian steel market participants envisioned October with low demand and slow business, with mills currently lobbying the government for an increase in import tariffs to as much as 25% from current levels of around 9.6% in the wake of a 40% surge in steel products imports this year, particularly from China. This follows a reduction of Brazilian import taxes on various industrial products in 2022.
Still, 38% of the respondents saw a potential drop in local prices compared with September, while 19% signaled potential increases.
The steel price index reading was 52.50 points for October, an increase of 3.09 points over September's index. The reading was above the 50 points cutoff for the first time since June.
In general, readings above 50 are interpreted as bullish, and readings below 50 are bearish. A reading of 50 suggests no change in sentiment.
