CSN plans price hike by June

Brazilian flat steelmaker CSN (NYSE: SID) plans to increase prices by the end of the first half of this year, AE-Setorial news service reported, citing the company's commercial VP Vasco Dias Junior. "Mills are pressured on the one had by increases in input costs and on the other by the reality of international prices that are still much higher than the domestic market," he said. The executive would not forecast how much the percentage increase would be as it will depend on each product. But the O Globo news service said company figures put the price hike at 15-25%. CSN does not plan to reajust prices once a year as was the case when it was a state-owned company. "There will no longer be large annual readjustments, but differentiated and independent price changes by product and market [conditions]and at different times during the year," Benjamin Steinbruch, the company's chairman, was quoted as saying by business daily Valor Economico. FOREIGN DEMAND The international steel market continues to be overheated with 1Q04 prices on average US$100/t higher than those at the end of 2003. Due to robust foreign demand and a continued sluggish domestic economy, CSN has revised export forecasts. Instead of exporting 35% of output as initially planned for 2004, the steelmaker is forecasting 40% for export. CSN should open its first commercial office in China this semester. The office will handle sales for the Asian region, which will include the increased iron ore production from Casa de Pedra and for buying coke and coal, AE-Setorial news service reported. The steelmaker imports some 400,000t of coke from China and sends it 30% of its exports. "Local partnerships to increase these activities are still being studied," said Steinbruch. Rio de Janeiro-based CSN has a crude steelmaking capacity of 5.8Mt/y.