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Petrobras, Braskem, CSN, Gerdau all plunge in wake of Brazil strike

Published 05/29/2018, 06:30 PM
© Reuters.  Petrobras, Braskem, CSN, Gerdau all plunge in wake of Brazil strike
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  • Brazil's truckers strike over rising diesel costs has entered its second week, continuing to paralyze transportation and logistics and causing serious problems for several industries and services.
  • Oil workers are poised to start a 72-hour warning strike tomorrow in a protest against high fuel prices, Petrobras' (NYSE:PBR) $21B 2017-18 divestment plan and the policies of CEO Pedro Parente.
  • No refinery shutdowns have occurred, but PBR has been forced to cut refinery output because of growing stocks and a shortage of chemicals as deliveries in and out of refineries have been limited by the strike; shares slid 5.4% today in New York.
  • Brazilian petrochemical producer Braskem (NYSE:BAK) says it has reduced output due to the strike; the stock tumbled 6.8% in today's trade.
  • Companhia Siderurgica Nacional's (NYSE:SID) Brazilian iron ore production unit has declared force majeure; shares plunged 8.5% today.
  • Steelmaker Gerdau (NYSE:GGB), which fell 7.6%, says the strike is "harming its production, raw materials and finished-products deliveries" in the country.
  • ETFs: EWZ, BRZU, BRF, EWZS, BZQ-OLD, BRAQ, UBR, BRAZ, DBBR, FBZ
  • Now read: Pass On FAZ


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