Brazils steel industry looks set to pick up next year,
domestic steel association IABr said, but lowered its 2012
In 2013, mills steel sales
are expected to return to 2008 levels as federal economic
stimulus measures are seen lifting local consumption. Sales
should rise 7.7 percent to 23.39 million tonnes in 2013, IABr
president Albano Chagas Vieira said, and steel consumption is
seen rising 4.3 percent to 26.4 million tonnes.
"We are optimistic about 2013,"
he said, citing a favorable currency rate, trade defense tools
and the correction of some "tax asymmetries."
Meanwhile, IABr cut this
years industry forecast due to global economic
deterioration and a weak local market.
Apparent steel consumption is
expected to total 25.3 million tonnes, down from a June
estimate of 26.37 million tonnes, and crude steel output is
expected to reach 34.8 million tonnes, down from Junes
estimate of 36 million tonnes.
The new estimates represent a
1.1-percent drop in output compared with last year but a
1.1-percent increase in consumption, IABr executive president
Marco Polo de Mello Lopes said during a press conference.
IABr also cut its 2012 domestic
steel sales forecast to 21.71 million tonnes from 22.95 million
tonnes previously, but still 1.3 percent higher than last year,
and trimmed its export forecast to 9.7 million tonnes from
10.92 million tonnes, down 10.9 percent from 2011 exports.
"Brazils steel mills
reported a utilization rate of only 72.5 percent in 2012,"
Lopes said, citing a weak local market and higher imports,
compared with an average capacity utilization rate of 73.6
percent last year.
Steel imports in 2012 are
expected to rise 0.9 percent to 3.8 million tonnes vs. a
previous forecast of a 3.8-percent drop to 3.64 million
A version of this article was
first published by AMM sister publication Steel First.