"I believe prices have dropped enough for 2022," said a source of flat steel distributors, who had received price increase announcements for the start of 2023.
In the survey of Brazilian producers, distributors, traders and end users, nearly 50% of respondents to S&P Global Commodity Insights' monthly sentiment survey for the Brazilian steel industry said prices could hold steady in December, while 34% of respondents saw potential discounts to boost trade.
The price index reading was 54.6, up 2.81 points from November. Readings above 50 are often interpreted as bullish and below 50 as bearish, and a reading of 50 indicates no change in emotion.
Sources reported that other steelmakers are targeting price adjustments between 5% and 10%.
“Demand is pretty weak, but inventories are very low... so if demand goes up a bit, the chain will be forced to restock, thus making room for price increases,” another distributor said.
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