Brazilian flat steel producers have notified distributors they are raising prices of hot- and cold-rolled steel between 8 percent and 10 percent this month, a steel market source and an analyst said on Wednesday.

Cia Siderúrgica Nacional SA, Usinas Siderúrgicas de Minas Gerais SA and the Brazilian unit of ArcelorMittal SA will keep zinc-coated steel prices unchanged, the source said.The price hikes are effective Jan. 1, Jan. 5 and Jan. 10, respectively, the source added.

Preferred shares in Usiminas rose 4.9 percent to 4.50 reais, the biggest gainers on Brazil's benchmark Bovespa stock index. Common shares in CSN fell 0.6 percent to 11.35 reais.

Spokesmen for Usiminas and CSN were not immediately available to comment. A representative for ArcelorMittal said the company does not comment on prices.

Thiago Lofiego, an analyst at Bradesco BBI, said Usiminas will likely benefit most from the price hike given its strong exposure to flat steels and the Brazilian market.

"An increase of more than 10 percent for all products and clients would boost EBITDA by around 650 million reais ($199 million)," he wrote in a client note.

 

Source:reuters.com

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