Bloomberg reported that Gerdau SA and Usinas Siderurgicas de Minas Gerais SA were cut to hold from buy at Deutsche Bank AG, which cited lower domestic prices and competition from imported steel that may affect the companies' earnings.

Mr Rodrigo Barros, an analyst at Deutsche Bank in Sao Paulo, wrote in a report that the downgrades are based on the strong price discounts that are currently offered in order to fight the very high level of steel imports in Brazil. He wrote that "In the particular case of flat steel, imports reached 28% of the apparent steel consumption in August 2010."

Deutsche Bank also chose Cia Siderurgica Nacional SA as its top pick recommendation in the Brazilian steel industry.

(Sourced from www.bloomberg.net)