Brazilian flat steel makers have begun negotiating higher prices for the industrial sector starting in May, sources said Friday.
"ArcelorMittal, CSN and Usiminas are conducting talks and planning to have their new pricing lists valid on May 1," an executive said. "The percentage of the price increase is in line with that recently announced for the distribution: 10%-12%."
Another source said that although mills try to implement these hikes, he believes that "they might succeed in implementing only around 7%-8% due to the complicated economic moment for Brazilian industry."
The values negotiated with the industry refer to specific medium and long term contracts, not to spot-market values.
The flat steel producer Usiminas is currently in a quiet period, but a mill source confirmed the company's ongoing negotiations with the industry.
ArcelorMittal does not comment on its pricing policies. CSN did not reply to a request for comment.
