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Companhia Siderurgica Nacional (SID) produces hot- and cold-rolled flat steel, galvanized sheets, and tin plates for the packaging, automotive, and construction industries. Companhia Siderurgica Nacional's integrated steel-making complex in Latin America has the capacity of producing five million tons of crude steel per year.
We are downgrading our recommendation on Companhia Siderurgica Nacional from Buy to Hold based on the international economic slowdown, which creates a challenging business environment for the steel industry. The company's third quarter operating results were solid and the Namisa deal was very positive.
Nevertheless, the loss in odd derivative instruments, the recent decline in steel prices and the falling demand in US and Europe during a recession is a major concern for short term.
Read the full analyst report on SID.
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