Steel Production Grows 7% in Brazil, But Exports Fall 10%

    Civil construction in Brazil

    Civil construction in Brazil Raw steel production in Brazil grew 6.9% in the first half this year over the same period last year, totaling 17.44 million tons. Steel products output increased 3.3%, and semi-finished products, 21.9%.

    According to the president at the Brazilian Steel Institute (IBS), Flávio Azevedo, more than 80% of the sector's production went to the three major consumer segments of the steel production chain: civil construction, automobile industry, and the capital goods industry.

    The export volume decreased 10.3%. Foreign sales totaled 5.05 million tons in the first half, with a surplus of US$ 3.66 billion. Azevedo explained that the reduction resulted from greater production and higher domestic sales.

    "A significant share of products that are usually exported by national steel industries were destined to the domestic market, in which these three segments are generating strong demand," he asserted.

    Imports, on the other hand, saw a 58.8% increase in volume in the first half, having reached 1.05 million tons. The figure represents growth of 77.8% in terms of imported value.

    A significant share of the sector's imports is comprised of steel tracks, which are not manufactured in Brazil, according to Azevedo. Another part of the production is kept in stock in order to prevent shortage in the domestic market.

    Raw steel production in the whole of 2008 should total to 36.27 million tons, growth of 7.4% in comparison with last year. Regarding domestic sales, the president at the IBS forecasts a 12.5% expansion this year, with a total of 23.12 million tons.

    Exports should rise by 2.1% in comparison with the volume shipped in 2007 (10.31 million tons). In terms of value, however, the IBS projects an expansion of 16.7% for this year, to reach US$ 7.7 billion.

    Azevedo informed that steel prices in the international market are on the rise. "And prices are going up in Brazil as well, because inputs are appreciating. Iron ore has risen from 60% to 90%, depending on quality. Petroleum coke has appreciated by more than 200%," he stated.

    Azevedo claimed that the outlook is positive for the second half of 2008, as well as for next year. "There will be no lack of steel consumers next year, and there will be no shortage of laminates or steel next year."

    ABr

    Tags:

    • Show Comments (0)

    Your email address will not be published. Required fields are marked *

    comment *

    • name *

    • email *

    • website *

    This site uses Akismet to reduce spam. Learn how your comment data is processed.

    Ads

    You May Also Like

    International Experts Debate in Brazil Public Radio

    Specialists in communication and representatives of major broadcasters in the Americas and Europe have ...

    Sadia & Perdigão

    Brazil Becomes a Leading Buyer of Consumer Products Companies Worldwide

    Together with China and India, Brazil stood out in terms of acquisitions of companies ...

    Brazil’s Emperor Tourist

    Brazil’s Emperor, Pedro II, during his time abroad found out how much Brazil needed ...

    Digital TV: Japan Sweetens Deal and Brazil Seems Poised to Go Japanese

    The Brazilian Minister of Communications, Hélio Costa, rebuffed criticism that he was "messing up" ...

    Fresh Icons

    Thanks to the lowest common denominator factor even the less gifted new Brazilian idols ...

    Despite Oil and Iron’s Good Showing Industrial Output Falls in Brazil

    After three consecutive months of increases in production in the industrial sector, output in ...

    Brazil industry

    Survey Shows Brazil South’s Industrialists Cautiously Optimistic

    The Industrial Entrepreneur Confidence Index (ICEI-RS), measured by the Federation of Industries of the ...

    Brazil Offers ‘New Geography of Trade’

    São Paulo is getting ready for the UN Conference on Trade and Development. The ...

    Comandante Ferraz, the Brazilian base in the Antarctic

    President Lula Will Check Brazil’s Research on Antarctic Base

    The president of Brazil, Luiz Inácio Lula da Silva, is expected this Friday, February ...

    Brazil exports

    Brazil Exports 46 Bi and Imports US$ 33 Bi This Year

    The trade balance result this year registered a surplus of US$ 4.203 billion in ...