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15 7.30 to 8.4.2018 AutoData News Agency Weekly Edition is produced by AutoData Editora Ltda . Rua Pascal, 1693 Campo Belo - São Paulo SP Brazil CEP 04719-001 Phone +55 11 5189 8900 . Translation: Allex Chies. Graphic Project/Art: Romeu Bassi Neto. Associated Team: Bruno de Oliveira, Leandro Alves, Márcio Stéfani. Responsible Journalist: Vicente Alessi, filho MS SJPESP 4 874. Editorial agreements: Tiempo Motor (Argentina) and Flash de Motor (Venezuela). The copying and/or distribution without previous permission are strictly forbidden. “The appreciated dollar is the last barrier before it happens. The industry cannot see itself stuck in a reality with few supply options. Events such as the discussions involving the United States and China reflect on the input’s price in the domestic market and make our operation more expensive. We do not discard alternatives to the local suppliers”. According to Marco Polo de Mello Lopes, executive president of Brazil Steel Institute, there is an overcapacity of 550 million of tons in the world, which 280 has China as its origin. The volume has the potential to be directed to the country which has the more open market: “Imports has had smaller quantities because of the depreciated real, but there may be a Chinese steel invasion if the currency changes. The scenario is really undefined.” A new price readjustment is expected for the second half. The rise fostered by the plants may reach up to 12,5% in products like rolled steel, widely applied on vehicles’ production. Data by FGV, Getúlio Vargas Foundation, shows that steel price on wholesale has increased more than the vehicles’ price in the last eleven months. The IPA, or General Price Indexes, of the hot strip coiling reached 134,2 in June, and the IPA of automobiles was of 128,6. From September of 2010 to December of 2016 the steel’s IPA was lower than the vehicles’ IPA – from August of 2017, however, the coil’s index has become higher. IPA’s purpose is to measure the evolving price pace performed on the wholesale market level, intercompany transactions, in other words, on market operations that precede retail sales.