Due to price hikes, Brazil’s steelmakers are reducing length of contracts with automakers

Steelmakers are renewing contracts with automakers for quarterly or half-yearly periods, which traditionally have been in force annually, according to information from the auto industry.

RIO DE JANEIRO, BRAZIL - Steelmakers are renewing contracts with automakers for quarterly or half-yearly periods, which traditionally have been in force annually, according to information from the auto industry.

The change in frequency represents a rupture in the tradition by which business agreements between two of the largest sectors of Brazilian industry are governed.

Until now, the steel industry would set a price to be paid throughout the year by vehicle manufacturers, irrespective of the volatility in commodity prices.

However, with prices on the international market rising both for the product they sell and the raw materials they consume . . .

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