Brazilian Steel Industry Actively Expands Long Product Rolling Capacity

Aug 24, 2023

According to the Brazilian Iron and Steel Association (IABr), Brazil's steel consumption will decline in 2023, mainly due to the deterioration in the performance of the steel industry in the second quarter and the uncertainty of the recent recovery of downstream industries such as automobiles, capital goods and civil construction, which account for about 82.5% of total steel demand. According to the new forecast, in 2023 Brazil's apparent steel consumption will decrease by 2.6% year-on-year to 22.9 million tons, crude steel production will decrease by 5% year-on-year to 32.4 million tons, and domestic sales will decrease by 6% year-on-year to 19.12 million tons . In April 2023, IABr predicted that Brazil's crude steel production would increase by 2% year-on-year in 2023, domestic sales would decrease by 0.7% year-on-year, and apparent consumption would decrease by 1% year-on-year.
It is reported that in the first half of 2023, Brazil's crude steel production totaled 15.972 million tons, a year-on-year decrease of 8.9%; domestic sales were 9.626 million tons, a year-on-year decrease of 5.7%; apparent consumption was 11.557 million tons, a year-on-year decrease of 1.6%.
Brazil's competitiveness is urgently needed in order for the steel industry to enter a sustainable growth cycle, as the performance of the steel industry is a leading indicator of gross domestic product, worldsteel said. For 2024, IABr predicts that Brazil's steel consumption will increase by 3% year-on-year compared to 2023 performance.
On the other hand, in order to better respond to the growing market demand, Brazilian steel producers will continue to invest in new growth product rolling capacity and continuously improve production capacity. Relevant data show that within two years, Brazil's steel production capacity may increase by 3 million tons per year, while increasing the output of high value-added long products.
According to relevant data, the long-rolling capacity of the Brazilian steel industry may increase by nearly 20%, reaching about 19 million tons/year.

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