Steel Industry resumes growth

According to Instituto Aço Brasil, which brings together companies in the sector, domestic sales will increase 8.9% this year compared to 2017

Brazilian steel industry faced difficulties with China, which had overproduction and topped prices: domestic market pulls recovery

The Brazilian steel industry, after years of difficulties, should close 2018 with a more robust recovery. According to the Steel Brazil Institute, which represents companies in the sector, domestic sales will grow 8.9% compared to 2017, totaling 18.8 million tons.

In apparent consumption, an indicator that brings together domestic production plus imports minus imports, the expansion will be 8.2%, reaching 21.1 million tons.

The industry also increased production this year. The institute remembers that new mills are entering the market and Companhia Siderúrgica de Pecém, in Ceará, reached a full rhythm of operation.

Therefore, the expectation is that domestic crude steel production will reach 36 million tons in the year. Meanwhile, imports are expected to increase by 2.6% compared to 2017, totaling 2.4 million tonnes. Exports will fall 7.2%, with 14.2 million tonnes, according to the institute.

Despite positive numbers for 2018, when compared to 2017, projections of domestic sales and apparent consumption still remain below the levels reached in 2013.

For the institute, the truckers’ strike, which took place in May, made it harder to grow steel sales in the domestic market. Steel Brasil also points out that US President Donald Trump’s decision to restrict the US market to steel imports has triggered a protectionist escalation by other countries, hampering the growth of export volumes. The institute predicts an increase in domestic steel sales next year of 5.8%, totaling 20 million tons. Apparent steel consumption is expected to rise 6.2% in 2019 to 22.4 million tonnes.


New Government

Steel Brazil formed a business coalition with nine other entities, such as Abimaq (machines), Abinee (electronics), Abicalçados, Abiquim, Anfavea (vehicles), CBIC (construction) and Brazilian Foreign Trade Association (AEB).

According to the institute, the group has been talking to the government transition team, defending a fiscal pro-adjustment agenda, associated with the approval of the Social Security and tax reforms.

Also as priorities are the resumption of investments in construction and infrastructure and the promotion of exports.


Chat in Brasilia

“It’s no use having a ministry just for having. In the first contacts with the elected government, the dialogue was assured and the intention is for it to be expanded, with measures that will advance the industry, taking obligations and facilitating business”.

Antônio Megale

President of the National Association of Automobile Manufacturers (Anfavea), on the complaint of the sector with the end of the Ministry of Industry, Foreign Trade and Services (MDIC), which will become secretary in the next government



Source: A Tribuna Newspaper