Posted on 25 Feb 2019
Brazilian steelmaker Companhia Siderúrgica Nacional (CSN) is set to increase its flats steel prices again as from 25 March. The company indicated this during its 2018 earnings conference call with analysts monitored by Kallanish.
According to CSN commercial director Luis Fernando Martinez, the company will raise prices by 10-15%, following an increase of 6-8% in January. The rise is necessary because of the positive momentum of international raw material prices and growing production costs, Martinez notes.
CSN is also expected to conclude the sale of its assets in Germany by the end of 2019 in order to reduce its net debt. "Our commitment to deleveraging BRL 3 billion ($796.1 million) will be made viable in some way, either through financial operations or the sale of assets, or both," CSN`s chief executive Benjamin Steinbruch says.
The ceo confirmed that the sale of Germany-based longs’ mill Stahlwerk Thüringen (SWT) is in process of binding proposals. The divestment of SWT is expected to be concluded by the end of 2019. CSN did not indicated whether the sale of its Portuguese mill Lusosider is being discussed with potential buyers.
CSN is expected to grow its steel sales by at least 10% in Brazil in 2019, as result of redirecting part of its exports to the domestic market, Steinbruch adds.
