State and prospects of Brazilian steel market

Brazil occupies a prominent place in a number of countries-ferrous metals producers, and it is estimated that the prospects for the development of its steel industry is positive.
Currently, the Brazilian steel market is characterized by increased domestic demand. In doing so, analysts have noted a sharp reduction of exports of Brazilian steel companies and the growth of sales of steel products in the domestic market, which in the period January - October 2007 compared with the same period in 2006 increased by 15,6% and 16,9 reached million t. Thus, in the first half of 2007, the company "ArcelorMittal Tubarao" exported about 600 thousand tonnes of hot-rolled strip, while in the domestic market, it realized more than 2 million tons of this product.

In a country in the past few years fell export thick sheet steel. Hot-and cold-sheet, galvanized sheet, steel reinforcing rods and exported only in small quantities.

Suffice successful case with export to the material. For example, "Gerdau Acominas" & its ships in the Middle East at a price of about 610 USD / t CAF. Company leaders believe that the company could export to a specific region to 100 thousand tonnes of billets. This calculation is made on the construction boom in these countries, which in 2006 imported 17 million tonnes of steel. Limiting factor is the export of high freight rates, as measured trader at 120-130 USD / t (freight to Europe amounts to $ 110-140 per tonne, and to the Far East - to $ 150 per tonne).

In the coming years, the country intends to significantly expand its capacity for crude steel. One of the leaders of the Brazilian Institute of Steel ( "IBS") M. Lopes said that by 2012, is scheduled to be operational capacity for the production of approximately 21.9 million tons per year in addition to the existing and valued at the beginning of 2007, 37.1 million t. Currently most of the new capacity is created primarily by existing steel producers. Thus, the company "ArcelorMittal Tubarao" put into operation in the power of 2.5 million tonnes per year, the company "Gerdau & Acominas" - in 1.5 million

"CSN" The company is building the first of two planned enterprises producing slabs capacity of 4.5 million tonnes per year. More power to impose include such companies as (million tonnes per year): "Usiminas's Ipatinga" (2,2), "Acos Villares" (0,6) and "Siderurgica Barra Mansa" (1,3). Estimated investment for these projects account for 17.2 billion U.S.

The newly established company is also planning to expand production. Thus, the company "Cia Siderurgica do Atlantico" intends to put into operation in the production capacity of 5 million tonnes per year, "Vallourec Sumitomo" - to 1 million t, "Acos Cearensa" - at 0.4 thousand t and "Siderurgica do Planalto" - at 0.4 thousand Investments so these companies can prepare the 5.8 billion U.S.

There are other major projects in the steel industry, including growth Crude steel production at 19 million tonnes per year. According to estimates of analysts, in the case of the implementation of all projects scheduled for 2012, the overall power of Brazil's crude steel could reach 78 million tonnes per year.

Projects for the development of the steel industry in the country's post-2012 is under development and include mainly the construction of Producers slabs companies such as (million tonnes per year): "CSN" (4,5), "Ceara Steel "(2,5)," Usiminas Cubatao "(3,5)," Siderurgica Mearim "(3,5) as well as a joint venture between the Brazilian company" Vale "and the Chinese company" Baosteel "(5,0). In addition, the company "MMH" considering the possibility of a project to build a factory for the production of rolled capacity of 500 thousand tonnes per year. Total investment projects scheduled for implementation after 2012, are 15.6 billion U.S.

Thus, Brazil is currently ongoing and planned investment in the iron and steel industry could constitute 38.6 billion U.S. (from the period 1994 - 2006. investment in the steel industry amounted to 18.9 billion dollars).

In the coming 5 years, "ArcelorMittal" intends to invest in the production of some 5 million U.S. This will enable it to increase production to 14.5 million up to 18.5 - 19.5 million tonnes per year. As the President "ArcelorMittal" L. Mittal, investments will be aimed at expanding facilities and services, and to build capacity for the manufacture of stainless steel. In addition, the company intends to develop its production of flat rolled products in South Africa and the mining of iron ore in Brazil.

Newsletter MEDT RF