Paulo Guedes, Brazil’s economy minister, has reached an informal agreement with local steel companies not to increase prices for the rest of the year; however, Marco Polo de Mello Lopes, president of the Brazilian Steel Institute, appears to have refuted the claim.
Guedes aims to stop price escalations and reduce import taxes by 10pc according to his online interview with Brazilian media on Jul 14.
The minister explained that the measure seeks to ease inflationary pressure in the construction sector, which is still affected by a limited supply of steel following the after-effects of the pandemic.
De Mello reiterated that since each company has its particular compliance, competition, and trade policies, manufacturers may not accept Guedes’ proposal.