We’re going to obtain this through techniques and through the World Trade Organization regulations. Now although I am a metallurgic engineer, I don’t really know about this. What Benjamin has asked us to do for all of the executives in the company, myself, Marcelo, Helena and the supply people, we are reestablishing. Well, when I joined CSN 22 years ago, we represented the first cost quartile in the world and I’m very convinced that the measures that we are adopting here are for the short term, for the recovery of operational excellence, we can already see the results, and this will take us to the right level of the cost of slab, very close to the R$ 3, 000 this year, perhaps in the second half of the year in the third quarter. And there are long-term measures that will extend for two years, which other reforms were implementing in the coke production.
Nobody in the world is competitive buying coke with high rates of pellet in their load. If you look at CSN, we have never had to buy slab or coke in the market. We have our own coke mill, and we have a higher cost. Those who add pellets are adding to the price. So in the short term, yes, structurally, we’re going to reach that level of R$ 3, 000 for slab. And I truly believe in the work that is being carried out, engineering work, technical work, at our Presidente Vargas plant, to see those cost levels of the first quartile again. We have iron ore, we have good people, we have all of the equipment that has been duly maintained, working. We have several paradigms that we have in maintenance that are not true. We have never worked so hard and invested so much in the company in terms of maintenance.
And I’m convinced that we’re going to reach that level not overnight, of course, and it is not just the problem of CSN. If you compare yourself to other companies, this happens in all the steel plants. And it will enable us to resolve this problem in a period of two to three years and have a good operational excellence one again.
Marcelo Ribeiro: Simply to add to this, this is Marcelo. This plan updates back for some time. It’s not a reaction to this more difficult year that we had in our investor days, cement days. We have spoken about this in detail with CapEx guidance that will enable us to attain this cost. And the diagnosis is what you mentioned. We need to go back to tier one levels, as Martinez mentioned. And this will happen in the coming years. This will not come from BQ. It comes from much more than that. We add value. We have the coded products. We are downstream. So the slab variable is important. But to take a good look at the plan we have is a solution for this.
Operator: Our next question comes from Ricardo Monegala from SACRA Bank.
Unidentified Analyst: Good morning, everybody. We have two questions. And a follow-up on Sasson and other questions regarding cost. The explanation is very clear that we will see the cost of slab dropping down to the level of R$ 3, 000 per ton, now in the shorter term should we see a sequential trajectory of cost R$ 3, 400 to R$ 3,000 during the quarter or will this not be sequential? I would like to confirm something with you that I have perceived. There was a great deal of relief in terms of coal and coke and in the price that you paid for third-party products for the steel mill so which will be the trajectory of the cost line going forward? Now the second question for cement. There’s a recovery — there was the expectation of a cost recovery in the fourth quarter, there was pressure instead now what changed since the last results call to impact the cost of cement and what can we expect going forward to reach that 30% margin?
Does this depend on price? Does it depend on increasing volume than price or work with Lafarge? These are my questions.
Marcelo Ribeiro: Thank you for the questions, Ricardo. This is Marcelo now the reaction to costs. There is a very short term issues, the normalization vis-a-vis the operational problems we had last year and the maturity of investments for the mid and long term, the battery, the hot rolled laminators so this figure of R$ 3 ,000. We don’t have a date for that, it is not a guidance in our Investor Day we have more details of our investments and terms. What I can say is that regarding more imminent issues of the steel mill, we have three converters. We’re ending the repair of the last of them now in March to allow for normalization and volume and quantity, and of course this will allow us to have more robust volumes and the fixed cost.
