Russian, Brazilian Steel Export Prices to Rise 60%, Nomura Says

By Mark Herlihy
May 7 (Bloomberg) -- Export prices for Russian and Brazilian hot-rolled steel will increase as much as 60 percent this year as rising spot prices offset higher raw material costs, Nomura International Plc said.
``The global steel industry is enjoying a renaissance of improving returns and growth,'' Paul Cliff, an analyst at Nomura in London, wrote today in a report. ``We continue to view steel producers from Russia and Brazil as ongoing outperformers.''
Russian and Brazilian producers offer higher prices, lower costs and faster growth than in other regions, Cliff wrote in the note. Evraz Group SA and Novolipetsk Steel were the ``top steel picks'' in the sector, he said.
Global steel prices will continue to rise for another three to six months before a ``cyclical correction'' in the fourth quarter, Cliff said.