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Brazil's Usiminas reports positive results, but warns that uncertainty lies ahead

Brazil's Usiminas reports positive results, but warns that uncertainty lies ahead

Brazilian steelmaker Usiminas delivered results for the first quarter that were above the market's expectations on Thursday, but warned of challenges in the second half due to high interest rates and uncertainty surrounding trade.

Businesses around the globe have been preparing for the impact of U.S. president Donald Trump's sweeping trade tariffs. These have sparked an international trade war, and have led to growing concerns and uncertainty about the global economic situation.

The Brazilian company said that it foresaw a difficult and uncertain scenario in the second half 2025. This was stated in a filing of securities after the firm reported its quarterly results.

The main reasons for this are the high volume of imports of steel under unfair competition conditions, the impact of the high interest rates on the domestic market, and the uncertainty in the international trade.

Steelmakers in Latin America’s largest economy have complained for years about unfair competition, claiming that China floods their market with cheap materials. Usiminas called again on the government do more to control these imports.

The Brazilian company reported a net income of 337 million reais (59.08 millions dollars) for the period January-March, an increase of 845% on a year-on-year. This was higher than the 225.02 that analysts had predicted in LSEG's poll.

Iron ore sales increased 13% on an annual basis, to 2,11 million tons. Steel sales rose 5%. Usiminas predicted that both should remain stable in the second half of this year.

(source: Reuters)