Brazilian steel producer Usiminas faced a murky price outlook in its latest quarter, as steel output increased but external pressures persisted. The appreciation of the Brazilian real by 12.5% against the US dollar reduced feedstock costs but exerted downward pressure on domestic price levels. Import flows surged by 30% in Q1, reaching 1.7 million metric tonnes, further restraining price increases.

Despite challenges, Usiminas reported a 3% price hike for automotive manufacturer contracts in April, with sales rising by 9% to 1 million tonnes in the first quarter. Crude steel production also increased by 10%, reaching 773,000 tonnes, while rolled-steel production remained stable at 1 million tonnes. Iron ore production grew by 12% to 2.1 million tonnes, with exports accounting for 75% of first-quarter sales. Profits soared to R337 million ($65 million), more than ninefold higher than a year earlier. Exports primarily served Argentina's automotive and pipeline sectors, accounting for 81% of total steel exports.