CSN will raise Brazil steel prices by 7.5 pct

* CSN seeks raise to counter surge in iron ore

* Will adopt a quarterly pricing system

* Shares fell in Sao Paulo on Wednesday

SAO PAULO, April 14 (BestGrowthStock) – CSN, Brazil’s second
largest producer of flat steel, will raise domestic prices by
as much as 7.5 percent in the second quarter to counter a
recent doubling of the cost of iron ore on international
markets, Chief Executive Benjamin Steinbruch said on
Wednesday.

The Sao Paulo-based steelmaker, also Brazil’s largest
diversified steelmaking group, will adopt a quarterly pricing
system to mimic pricing movements in global ore markets,
Steinbruch told reporters at an industry event.

“We are too far away from recouping some of the discounts
that we all awarded last year,” he said. “What we are doing now
is basically catching up with the iron ore companies.”

The action comes as Brazil’s Vale (VALE5.SA: ), the world’s
largest producer of iron ore, and rivals including BHP Billiton
will price the metal quarterly from April 1. A new round of
price increases by rival steel companies is likely as supply of
the metal remains tight and the cost of coal rises globally.

Analysts have said steel companies are more likely to
charge higher prices for distributors first. Some specialized
clients will only be told of price increases in the second half
of the year.

Shares of CSN (CSNA3.SA: )(SID.N: ) fell 0.3 percent to 35.70
reais. Shares have more than doubled over the past 12 months.

Growth Stocks

(Reporting by Alberto Alerigi Jr; Writing by Guillermo
Parra-Bernal)

CSN will raise Brazil steel prices by 7.5 pct