CSN, Brazil's largest diversified steel group, is considering acquisitions in the coal industry to boost its access to the key steel ingredient, Chief Financial Officer Paulo Penido Marques said on Wednesday. Coal assets have gained relevance among steel and mining companies as prices are seen reaching record levels this quarter. Steelmakers are especially worried about price swings as miners want to carry out monthly price revisions instead of quarterly. For CSN, which last month announced the sale of a 19.99 percent stake in Australian coal producer Riversdale (RIV.AX) for $830 million, more exposure to coal assets would be "desirable," Penido said. The more than $400 million in gains from the sale will be booked fully in the second quarter, he noted. Shares of CSN (CSNA3.SA)(SID.N), which are widely recommended as "buy" by analysts, are underperforming this year because of concern that Chief Executive Benjamin Steinbruch could launch a spree of acquisitions as he seeks to diversify into mining, cement and logistics.
Companhia Siderurgica Nacional (CSN) is an integrated steel producer in Brazil and Latin America. Shares of SID traded higher by 0.1% or $0.015/share to $15.485. In the past year, the shares have traded as low as $13.16 and as high as $18.41. On average, 3975220 shares of SID exchange hands on a given day and today's volume is recorded at 2368260.
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