Usiminas downgraded to Equal Weight from Overweight at Morgan Stanley

Morgan Stanley downgraded Usiminas (USNZY) to Equal Weight from Overweight with a price target of R$6.70, down from R$8.20. The firm sees a “persistently challenging” Brazil steel industry outlook due to elevated imports from China. Steel imports from free-trade zones and countries with bilateral trade agreements incentivizes transhipments and will keep imports at elevated levels, the analyst tells investors in a research note.