Prices
March 18, 2022
CRU: War in Ukraine and Higher Global Prices Will Put Pressure on Brazil
Written by Diego Giangreco
By CRU Analyst Diego Giangreco, from CRU’s Steel Monitor, March 16
Brazilian distributor sheet prices fell month on month in March due to weak demand, while mills increased their prices in February or stopped giving discounts to match the trends in the international markets. Before the invasion of Ukraine, we were expecting a downward trend in prices, but now the trend may reverse – at least in the short term. The invasion will put upward pressure on the costs of semifinished steel and steelmaking raw materials. In 2021, the top three exporters of slabs were Russia, Brazil and Ukraine, which accounted for 37%, 26% and 12% of all global exports, respectively. Due to the war in Ukraine and the new sanctions on Russia, a dramatically lowered slab supply will support prices.
