Slowdown signs - Brazilian steel output forecast for 2011 slashed by 8 pct YoY

The Brazilian Steel Institute said that Brazil's steel output is seen at 36.3 million tonnes in 2011, down by 8% YoY from the previous forecast of 39.4 million tonnes.

Output of steel this year will still be up 10.5% from 2010 levels, the institute's latest projections showed.

Brazilian steel exports were expected to reach 12.2 million tonnes this year, while imports were seen at 3.4 million tonnes.

Brazil's economy has started to show clear signs of slowing in recent months as higher interest rates, restraint on government spending and a slowing global economy take their toll on gross domestic product. Local steel companies are also struggling with high iron ore prices and competition from imports that have become increasing cheap due to the strength of the Brazilian real.
2010 MARKET DATA from Brazil Steel Institute web site

Steel producing park: 28 mills; 13 integrated (from iron ore) and 15 semi-integrated (from processing pig iron and scrap), managed by 10 business groups.

Installed capacity: 44.6 million tonnes of crude steel

Crude steel output: 32.9 million tonnes

Steel products output: 31.8 million tonnes

Apparent consumption: 26.1 million tonnes

Employees: 142.226

Trade balance: USD 337 million - 1.7% of Brazil’s trade balance

World’s 15th largest steel exporter (direct exportations)

World’s 7th largest net steel exporter (exp - imp): 3.1 million tonnes

Exports to over 100 countries

Indirect exportation (steel contained in goods): 2.7 million tonnes

Brazilian per capita steel consumption: 152 kg/crude steel/inhabitant

Main steel consuming sectors: Civil Construction; Automotive; Capital Goods, Machines and Equipment (including Agricultural); Household and Commercial Appliances

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