Brazil automakers concerned about steel price hikes

Brazil's car manufacturing association Anfavea denied on Tuesday that it has been informed of steel price increases from local steelmakers Gerdau and Usiminas.

"Any increase in costs at this moment is a matter of concern," Anfavea president Luiz Moan was quoted as saying by news agency Agência Estado.

Brazil's top steelmaker Gerdau reportedly informed steel distributors recently of a price hike of around 15% on its long steel products.

Gerdau's move was followed by fellow steelmaker Usiminas, which reportedly raised prices of the company's wholesale products by 5-7%. The price hike is expected to impact about 60% of the firm's clients and also affect the distribution chain. Automakers were reportedly unaffected.

The market expects fellow steelmakers CSN and ArcelorMittal to follow suit with increases of their own.

Anfavea said Tuesday it believes full-year 2015 auto sales will now shrink 23-24%, compared with the 20.6% original forecast, Agência Estado said. New estimates are expected next week.

The contraction is mainly attributed to the country's worsening political and economic climate.