São Paulo – Brazil’s steel output reached 17.2 million tons in the year’s first six month, up 2.9% over the same period of last year, according to data shown this Wednesday (25) by Brazil Steel Institute in São Paulo. Domestic sales totaled 8.8 million tons, climbing 9.9% in the same comparison.
The institute confirms the recovery trend but points out that the growth is based on the low percentage registered in 2017. “We need to put this growth in perspective,” said Marco Polo de Mello Lopes, the institute’s CEO.
Exports totaled 6.9 million tons, a drop of 5.7% over last year’s first six months. Regarding revenues, there was a 16% increase. “With the American market more protected, the immediate result would be higher prices,” explained Lopes, mentioning the enforcement of a 25% tariff over the steel imported by the United States. For Brazil, the US established an import quota.
Brazil’s steel imports totaled 1.3 million tons, up 5.6% over 2017’s first six months.
The sector’s 2018 growth forecast was revised down, considering the domestic and global scenarios, the former impacted by such factors as the truckers’ strike at the end of May, and the latter dealing new protectionism measures in countries such as the US. In April, the institute’s forecast was showing a 8.6% growth, which has now been revised down to 4.3%.
The strongest impact should be felt in exports, with the forecast being revised down from a 10.7% growth to a 0.6% decline. Also brought down were the forecasts for domestic sales, from a growth of 6.6% to 5%, and for imports, from 10.1% growth to 5.3%.
Translated by Sérgio Kakitani
