RIO DE JANEIRO -(Dow Jones)- Brazilian steel mills may cut prices on some flat steel grades by September, as the threat of imports rises and inventories at steel distributors remain excessively high, Barclays Capital said. Brazilian steel producers have avoided announcing further price increases as the domestic steel environment is deteriorating due to the Brazilian real's appreciation, the downturn in global steel prices and high inventories, Barclays Capital analyst Leonardo Correa said in a note to clients. Preliminary figures point to flat steel inventory levels equivalent to 3.7 months' usage in May, higher than "normal" industry stocks levels of 2.6 months' usage, Barclays said, citing information from the country's Steel Distributors' Institute INDA. -By Diana Kinch, Dow Jones Newswires; 55 21 2586 6086; diana.kinch@dowjones.com
