Brazilian steelmaker Usiminas on Thursday delivered first quarter results above market expectations but flagged that the second half of the year faced challenges amid high interest rates and trade uncertainties.
Companies around the world have been bracing for the potential impact of US President Donald Trump’s sweeping tariffs, which have sparked a trade war and led business to warn of growing uncertainty and concerns about the global economy.
“For the second half of 2025, we foresee a challenging and uncertain scenario,” the Brazilian firm said in a securities filing after reporting its quarterly results.
“That is mainly due to high volumes of steel imports under conditions of unfair competition, the impact on domestic consumption caused by the current high interest rates, and uncertainties in international trade.”
Steelmakers in Latin America’s largest economy have long complained of an unfair playing field, saying that China floods the market with cheap material. Usiminas again called on the government to do more to control those imports.
The Brazilian firm reported a net profit of 337 million reais ($59.08 million) for the January-March period, up 845% year-on-year, beating the 225.02 million expected by analysts in an LSEG poll.
Steel sales were up 5% on a yearly basis to 1.09 million metric tons while iron ore sales jumped 13% to 2.11 million tons. Both should remain relatively stable in the second quarter, Usiminas said.
($1 = 5.7044 reais)
(By Gabriel Araujo; Editing by Bernadette Baum)
