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Brazilian auto firms look elsewhere.

Date: Saturday, July 1 2000

Negotiations between Brazilian steel producers and their customers in the automotive industry after car and auto parts producers rejected a 10-15% price increase announced by the mills in May.

Car producers say this will make it difficult for them to sell their goods in foreign markets

and parts manufacturers have suspended their orders from steelmakers.

Some of the car manufacturers have threatened to import their steel from the Brazilian companies' competitors.

* Crude steel production is forecast to rise 10% in Brazil this year. The Brazilian Steel Institute says output of flat and long-rolled products is expected to rise by 8.1% and 7.8% respectively over the next six months. This growth is being driven by demand from the automotive and electrical appliance markets.

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Subject: Automobile industry (Contracts), Steel industry (Prices and rates), Automobiles
Product: Automobiles, Blast Furnaces & Steel Mills
Location: Brazil

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Brazilian auto firms look elsewhere.

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