Reuters reported that Brazil's second largest producer of flat steel CSN will raise prices for most products by as much as 8%.

According to the sources, the Sao Paulo based mill is raising prices for cold rolled steel products by 5% at the distribution level, with increases for hot rolled steel coming as high as 8%. They added that the new prices will take effect July 20th 2012.

The company's press office said it does not comment on pricing.

Both CSN and larger rival Usiminas gained pricing clout with customers after Brazil's currency, the real, sank about 9% in the second quarter making the cost of imported steel less affordable in the local market. The real has gained ground this month against the US dollar, which limits the ability of both mills to boost prices in the future.

Sources with knowledge of the situation told Reuters that Usiminas raised prices last week for rolled steel and other specialty products between 5% and 7%. The price increase was the first in at least a year.

Analysts said that prices for long steel products, which are widely used in homebuilding and heavy construction, have already begun to rise and further increases are expected in coming months.

Source - Reuters

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