Reuters reported that Brazil state development bank BNDES may support consolidation in the country's steel industry as the government looks to create global champions.

Mr Luciano Coutinho president of BNDES said that it has helped fund a series of major deals in Brazil the past year, including the merger of food processors Sadia and Perdigao that created Brasil Foods and the Aracruz Votorantim Celulose transaction that formed pulp and paper giant Fibria.

He added that "Brazilian steelmakers owe the country a more assertive stance. The steel sector is a large exporter, but it hasn't produced, until now, companies on an international scale."

Mr Coutinho called on Brazilian steel companies to take on a new strategic stance and said there were opportunities abroad, particularly in the embattled US steel industry.

(Sourced from www.reuters.com)