CSN sees potential for Brazil to negotiate steel quotas with the U.S. after recent tariffs were imposed. CSN aims to engage in dialogue instead of retaliation. Despite a fourth-quarter net loss, the company exceeded earnings forecasts, with positive market reactions to its performance.
Brazilian steelmaker CSN has expressed optimism regarding the possibility of negotiating a quota mechanism with the United States following the implementation of tariffs on steel and aluminum imports by U.S. President Donald Trump. Instead of retaliating against what CSN described as “unjustifiable” tariffs, Brazil aims to engage in dialogue with the Trump administration.
CSN’s commercial head, Luis Fernando Martinez, indicated that negotiations similar to those from 2018 might be initiated in the coming months, proposing a potential quota system. Historically, Brazil has been one of the largest suppliers of steel to the U.S. and previously secured duty-free quota agreements based on shipment volumes before tariffs were imposed.
Despite a reported fourth-quarter net loss of 85 million reais ($14.66 million) due to high financial expenses, CSN’s adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) reached 3.33 billion reais, surpassing market expectations. The company’s net revenue was reported at 12.03 billion reais, outpacing analysts’ forecasts.
Following the earnings announcement, shares of CSN increased by over 7.5%, with its mining division, CSN Mineracao, witnessing a rise of approximately 10%. Analysts from JPMorgan recognized CSN and CSN Mineracao’s performance as exceeding forecasts, suggesting an upward revision of consensus estimates.
CSN is actively seeking negotiations with the United States regarding steel quotas amidst recent tariff impositions. The company reported mixed financial results for the fourth quarter, yet exceeded earnings expectations, which led to a positive market response. The potential for a quota system could provide a strategic avenue for Brazil in its trade relations with the U.S.
Original Source: www.marketscreener.com
