Brazilian flat steel inventories fell to 1.018 million metric tons in April, 17% below the levels in the same month in 2011, steel distributors' association Sindisider said.
However, compared with the month of March, April inventories grew by 0.2%, representing 3 months of consumption, up from the equivalent of 2.7 months of consumption in the previous month, Sindisider said.
Steel distributors purchased 381,900 tons of steel from Brazilian mills in April, which was 9.2% less than a year earlier, the association said.
Imports of flat steel products into Brazil fell to 103,900 tons in the month, which was down 22.5% from a year earlier. Imports are expected to fall further due to the recent appreciation of the U.S. dollar against Brazil's real, as steel imports are priced in dollars.
In addition, the Brazilian government's recent measures to stimulate certain industrial sectors, which include the reduction of taxes on vehicle purchases, should boost domestic steel consumption, said Sindisider president Carlos Loureiro.
Trade in flat steel in Brazil in 2012 should grow about 6% from 2011 levels, Loureiro said.
Source: Dow Jones