CSN is seeing a favorable scenario for an increase in flat steel prices in Brazil of around 7.5% to 10% starting next month, said this Thursday (8) the company’s commercial director, Luis Barbosa Martinez .
“If demand improves a little and the growth we are seeing now in March stabilizes… I think we will be able to score between 7.5% and 10% in plans”, said the executive during a conference with analysts, after disclosing the results of the fourth quarter the night before.
“In long products, it is more complicated because of the equation of tighter supply and demand”, added the executive. Martinez mentioned that the so-called “premium”, the price difference between imported steel and that produced in Brazil, in the long segment is negative by 14%, while in flats it is “slightly negative”.
According to him, CSN has a plan to reduce production costs throughout the first half of this year, which includes evaluating new purchases of third-party boards for lamination.
In the fourth quarter, the cost of slab was 3,923 reais per ton compared to 4,133 in the third quarter and 3,673 in the last three months of 2021. The executive assesses that CSN is targeting a margin of 20% for the steel segment, after 13.6 % at the end of last year.
The company estimates an investment of BRL 4.4 billion in 2023, after disbursements of BRL 3.4 billion in 2022, said finance director Marcelo Cunha Ribeiro in a conference call with analysts this Thursday.
“We expect an important acceleration in cash generation, with positive evolution of Ebitda that will offset the higher investment”, said the executive. “The positive cash flow will allow us to reduce debt,” he added.
Ribeiro also stated that CSN’s leverage in January was 2 times, below the level of 2.21 times at the end of last year. The company continues to aim to maintain liquidity of around R$ 15 billion and leverage between 1 and 2 times.
Around 12:20 am, CSN shares fell 5.73%, to R$ 16.96, on the São Paulo stock exchange, among the biggest losses of the Ibovespa, which dropped 0.55%.
Source: CNN Brasil
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