Usiminas' Value-Over-Volume Bet Pays Off as PCI Comes Online
Usiminas delivered a quarter that neatly encapsulates its current strategy: squeeze more value from every ton sold, complete the cost-saving injection plant, and patiently wait for the trade defenses to bite. The numbers were a clear improvement — consolidated EBITDA reached BRL 761 million, a 12% margin, with the steel unit specifically posting a 26% EBITDA increase on better mix and prices. But the real story is the company's deliberate pivot toward margin over volume, and the structural catalysts that could sustain it.
Steel: Value Over Volume Sticks
Commercial Vice President automotive segment Miguel Angel Camejo reiterated the pricing discipline that has been a consistent theme: “Since the beginning of the year, we have led the increase of prices basically based on the pricing policy defined by the company... Today, we see cold-rolled coils with more gains in profitability.” — Miguel Angel Camejo · 2026-07-31 This echoes the stance from the April call, where he noted that the January increase was aimed at “improving the margins of the steel sector after a long period of lean margins considering that we were in conditions of unfair competition.” — Miguel Angel Camejo, Executive (likely CFO or similar senior financial role) · 2026-04-24 The persistent import pressure, which Miguel flagged in October: “... we made adjustments, the price in the spot price in order to protect and to respond to this international pressure...” — Miguel Angel Camejo, Executive/Management (likely Operations or Commercial Director) · 2025-10-24 The shift is paying off: the steel unit's EBITDA margin rose 2.4 percentage points quarter-over-quarter to 13%.
The PCI Project: The Cost Engine Finally Online
The completion of the Pulverized Coal Injection (PCI) plant at Ipatinga is the single most important operational development this quarter. President Marcelo Chara said the new plant allows Usiminas to “increase by 15% our injection rate for this quarter when compared to the previous one. And in the next quarter, we estimate to have an additional 15%.” — Marcelo Chara · 2026-07-31 This directly addresses the rising cost of coal and coke, and Diego Garcia confirmed that without the PCI project, the next quarter's EBITDA would have been "much worse." The PCI project is a key part of the company's competitiveness agenda.
Mining: Freight Woes and Grade Prioritization
On the mining front, sales volumes recovered 27% sequentially after the rainy season, but margins were squeezed by a 35% jump in maritime freight. CFO Diego Garcia explained the strategy: “Within this scenario of highly volatility and very reduced margins, we are prioritizing operations with higher margin in the mining activities... we are not focusing on the mining of lower grade.” — Diego Garcia · 2026-07-31 This value-over-volume approach is now being applied to iron ore as well, and maritime freight remains the key swing factor. The company is also working to reduce internal costs, recognizing that freight is largely out of its control.
CapEx Discipline and the Antidumping Clock
Usiminas trimmed its 2026 CapEx guidance from BRL 1.4 billion to a range of BRL 1.2–1.4 billion, prioritizing projects with the highest return. Marcelo Chara explained the rationale:
The company also zeroed out its forfaiting operations in July, further normalizing working capital. On the trade front, the antidumping process for hot-rolled coil advanced with a technical note confirming a margin above 35%, with final determination expected by the end of August or early September. This is a critical catalyst for domestic pricing power.The projects that are being delayed are all projects of sustaining CapEx, a large number of projects with the purpose of maintaining financial discipline, maintaining a strong cash position and allowing us to focus on the projects with better value added, such as the coke battery project, which maintains its original schedule.
In sum, Usiminas is executing on its internal efficiency levers while positioning itself for a potential rebound in domestic steel pricing. The PCI project is a clear win, the CapEx discipline maintains balance sheet strength, and the antidumping decision could unlock meaningful margin expansion. The mining division remains the weak spot, but the company's willingness to sacrifice volume for profitability suggests it will not chase unprofitable tons.