Brazilian steelmaker Gerdau is pushing for a 7% price increase in September while import parity remains low and the domestic construction sector initiates a recovery, equity analysts said.
The company has unsuccessfully been trying to readjust its rebar price in the domestic market this year amid falling scrap costs and faltering demand. There seem to be more signs of an improved pricing power, however, while activity picks up.Fastmarkets' price assessment of steel reinforcing bar (rebar) domestic monthly, delivered Brazil was 2,300-2,400 Reais ($555-579) per tonne on August, from 2,370-2,480 Reais per tonne the month before - the next assessment is due on September 6.Market participants are also citing fierce competition as another reason for the failed attempts at increasing prices this year. Smaller rebar producers such as A??o Verde do Brasil (AVB), Simec,...