How Gerdau Wins: Steel Longs Vs. Flat Steel Products in Brazil

by on

Brazil’s Gerdau is one steel company that’s ahead of the game right now.

“The company, which ranks as the world’s second-biggest producer of long steel behind ArcelorMittal, posted a net income of R$401m ($173m) for the second quarter on net revenue of R$9.9bn,” according to the FT. “In contrast, Usiminas, the biggest maker of flat steel in Brazil, lost R$22.1m in the second quarter – its sixth consecutive loss, while analysts are split over whether CSN will post a profit or a loss for the period.”

But not all is good in this steel story: the producer’s stock is down about 18% this year.

On Wednesday, August 14, the day’s biggest mover was the steel billet 3-month price, which saw a 3.3 percent increase on the LME to $155.00 per metric ton. Also on the LME, the steel billet cash price rose 2.3 percent to $135.00 per metric ton.

* Get the complete prices every day on the MetalMiner IndX℠

Chinese steel prices were mixed for the day. The price of iron ore 58% fines from India remained a bit higher. The price of Chinese HRC rose by 1.4 percent after a three-day flat streak. For the fifth consecutive day, the price of Chinese coking coal held flat.

The 3-month price of the US HRC futures contract flattened at $624.00 after two days of improvement. The US HRC futures contract spot price held steady yesterday, remaining around $648.00 per short ton.

FREE Download: The Monthly MMI® Report – covering the Steel/Iron Ore markets.