The market for hot-dipped galvanized steel products in
Brazil is expected to grow 9.5 percent this year, according to
Carlos Gonçalves Henriques, president of the
countrys nonferrous metals institute, ICZ.
The use of zinc-coated
steel, which is widely used in buidlings and structures subject
to extreme environmental conditions, will rise from last
years growth rate of 7.5 percent, he said.
The sector should
maintain the same growth rate again next year, he added,
boosted by increased demand in general construction,
infrastructure projects and the oil and gas industry.
"Civil construction is
very important for us, and we also have many public works to
come," Henriques said.
have invested in output in recent years, reaching a
"comfortable" capacity level, he said. Today, ICZ estimates the
industrys current galvanizing production capacity at
650,000 tonnes per year, up from 450,000 tonnes annually in
Executives from the
sector are optimistic about the future, but have so far been
disappointed by the lack of orders related to the construction
of venues for the World Cup in Brazil next year.
"We had expectations,
but didnt get any sales related to stadiums," a source at
a São Paulo-based galvanizing company said.
source said the industry will see good momentum next year, with
growing public investments ahead of the presidential
infrastructure (projects lead to an) increase in demand just
before elections," he said, adding that he expects a growth
rate of about 5 percent next year.
consumption of galvanized steel products is 1.6 kilograms per
capita every year vs. as much as 20 kg each year in other
countries, according to ICZ data.
In neighboring Chile,
for instance, the rate is 8 kg per capita, ICZ added.
"It takes a cultural
change to increase use of galvanized products, with more
information about the products," Henriques said.
have a growing importance in industries requiring structures
that are more resistant to corrosion, such as "in the oil and
gas industry and in the construction of ports ... (where
structures and machinery) face a very aggressive environment,"
A version of this
article was first published in AMM sister publication Steel