The output of steel in Brazil reached 28 Million Tonnes during January-September 2008 due to the increased domestic civil construction and rise in exports of semi-finished products.
As per Brazilian Steel Institute, the bulk steel production in Brazil reached 28 Million Tonnes in the first nine months of 2008, recording a 7.3% rise over the same period in 2007. In particular the production in September 2008 reached 3 Million Tones, equating to an increase of 5% over August 2008, as reported by SteelGuru.
The production of long steel jumped 10.3% in September 2008 to reach 966.7 Metric Tonnes from September 2007. However, flat steel output declined 8.2% to touch 1.173 Million Tonnes in September 2008 from September 2007. The annual production figure, from October 2007 through September 2008, is recorded at 35.606 Million Tonnes.
Further, the domestic steel sales rose 9.6% in September 2008 to touch the mark of 1.966 Million Metric Tonnes from 1.794 Million Tonnes in September 2007.
The increase in steel production in Brazil is because of the constant demand from domestic civil construction. Brazil’s civil construction industry is on a surge due to the development plans of the government and improvement of economic situation in the country. As a result, the demand for steel is rising. The production of steel is also boosting because of the increase in exports of semi-finished steel products.
Furthermore, the increase in auto production, together with development in oil and gas industry, agricultural heavy machinery and appliances, has increased the demand of steel. The demand of steel in and outside the country has been driven by the increased steel production capacity of Brazil.
By 2010, the steel production capacity of Brazil is expected to reach 50 Million Tonnes per year. This is because of investments that are expected to be channeled into new steel plants. The industry is also undergoing expansion and modernization, which would further boost the steel production capacity of Brazil.
According to the Research Analyst at RNCOS, “The steel production in Brazil has been increasing due to rise in both domestic as well as international demand for Brazilian steel. Since the production capacity is likely to increase, it appears that Brazil will successfully meet the global steel demand. Further, as about 40% of steel produced in Brazil is exported, it would increase foreign exchange of the country.”
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