IBS downplays complaints about steel prices

The Brazilian steelmaking association IBS issued a note saying that it is not responsible for the pricing policies of its members that negotiate directly with consumers. The entity said the steel sector is being used as a "scapegoat" by the steel consuming industries that are requesting government intervention to manage prices or restrict exports of the metal, IBS said. Steel consuming associations like car makers entity Anfavea and capital goods association Abimaq are complaining about steelmaker's announcement to up prices 11-13% in January. Providing sufficient supplies on the domestic market and competitive prices have been important factors for increasing exports of products that contain steel such as vehicles, autoparts and machines, by 28% this year compared to 2002, IBS said. IBS officials in a meeting with journalists last week said steel consumers wrongly cast blame on steel prices for price increases of their products. According to IBS, in the case of vehicles, for example, steel accounts for just 6% of the price of a vehicle. A 12% increase in the price of steel would translate in less than a 1% increase in the cost of the vehicle.