São Paulo – The output of crude steel in Brazil should stand at 32.8 million tons this year, a decline of 3.4% in comparison to 2014, according to estimation made by Brazil Steel Institute. Domestic sales of steel products should decline 15.6% with 18.3 million tons.
The material’s apparent consumption in the country will be of 22.3 million tons, a decline of 12.8%, matching 2007’s levels. Imports should reach 4 million tons, an increase of 0.8%.
The decline in demand of the auto, construction industry and machinery and equipment sectors, which answer for almost 80% of the steel consumption in the country, is the one responsible for the setbacks forecasted by the institute.
According to the president of the Brazil Steel Institute, Marco Polo de Mello Lopes, the steel and processing industries, due to structural and cyclical issues, are going through the greatest crisis in its history. “This is a very strong crisis and very different from the 2008 and 2009 one.”
The numbers show that from January to June, output increased 2%. Domestic sales dropped 12.9%, the apparent consumption declined 10.4% and imports went up 4.3%. “Imports increased, despite the dollar appreciation and the estimations that, with the currency oscillations, there could be a retreat”, he explained.
*Translated by Sérgio Kakitani
