Goldman Sachs Group analysts led by Mr Marcelo Aguiar cut the estimates for operational earnings and price targets for Brazilian steelmakers Gerdau, CSN and Usiminas, as an expected deterioration in the global macroeconomic scenario is hampering the outlook for steel prices around the world.

Mr Aguiar and his team wrote in the report that "This weak pricing scenario, together with uncertain implications from recent mergers and acquisitions activity and unattractive valuation multiples, in which Brazilian players are trading at a premium to global emerging market peers leads us to become less constructive on the near term performance of Latin American steel stocks."

(Sourced from www.reuters.com)