Brazilian mining and steel company CSN anticipates domestic demand will keep steel prices steady in 2025, with the possibility of an upward trend in the coming months.

Sales to the agricultural machinery and automotive industries are expected to continue rising, while civil construction sales could improve as Brazil's rainy season concludes.

Executive director Luis Fernando Martinez noted that demand remains strong but emphasized that the company will restrain price increases to sustain profitability. CSN's steel prices rose by 5 percent in the first quarter compared to the previous year, driven by a 7 percent increase in demand.

Steel prices hit a two-year high, reaching R5,252 ($928) per metric tonne, up from R5,008 per tonne a year earlier. Despite growing consumption, CSN cited increased competition from imports as a limiting factor. Brazil’s import penetration in the steel market reached 27 percent in the quarter, surpassing CSN’s domestic market share. Martinez called the situation "unsustainable."

While Brazil introduced a 25 percent tariff on 11 Chinese steel products in June 2024, the company considers the policy inefficient. The tariff is set to expire by the end of May, but prices are expected to remain stable.

CSN recorded a first-quarter shipment volume of 1.14 million tonnes, a 5 percent increase from the previous year, with domestic market sales growing by 8 percent. Slab production fell by 16 percent to 812,000 tonnes due to a January stoppage at Blast Furnace 2 in Rio de Janeiro, which is expected to remain under maintenance for at least three more months.

Flat-rolled steel output dropped by 11 percent to 775,000 tonnes, while long steel production rose by 12 percent to 58,000 tonnes. CSN reported a first-quarter loss of R732 million, a 53 percent increase from the R480 million loss recorded a year earlier.