Usiminas: Straight from the Call

Research evidence excerpt

Usiminas: Straight from the Call

J P M O R G A N Latin America Equity Research

30 July 2026

Usiminas Overweight

USIM5.SA, USIM5 BZ

Straight from the Call Price (29 Jul 26):R$8.32

LatAm Basic Materials

Usiminas recently conducted its 2Q26 results conference call. Overall, Rodolfo Angele, CFA AC

management flagged persistent headwinds from a distorted domestic market (55-11) 4950-3888

(elevated imports and high inventories) and rising costs tied to the global rodolfo.r.angele@jpmorgan.com

geopolitical situation, particularly maritime freight. For the next quarter, the LatAm Metals & Mining

company expects stable results in the steel unit (ex-extraordinary effects) on higher Tathiane Martins Candini

volumes, while mining profitability remains pressured by freight. For more details, (55-11) 4950-4116

please see below and the full report Usiminas: 2Q26 Results: Softer Print, Lower tathiane.m.candini@jpmorgan.com

Capex, Cautious On Mining. Banco J.P. Morgan S.A.

• Prices: discipline maintained, with July industrial contract updates and

further pass-through tied to distribution trends. Management reiterated

that its pricing strategy is unchanged from the start of the year, being stringent

on price to recover margins and profitability needed for operational

sustainability. Early-year increases created some distortions that have since

normalized. In July, industrial contract renewals brought adjustments,

correcting some price lag versus target margins. Management noted the last

month's average price was very similar to the full-quarter average, since

adjustments were front-loaded at the start of 2Q. Looking ahead, prices are

managed across three segments: automotive (following contracts), industry

(updates tracking the distribution sector, with a lag of one quarter up to 5–6