Cia Siderurgica Nacional SA, the third largest Brazilian steelmaker by output, sees demand gaining speed in 2013 as the government readies Rio de Janeiro to host the soccer World Cup in 2014 and the Olympic Games in 2016.

Mr Luis Martinez executive director for steel sales at CSN said that demand for steel used in the construction sector will grow at about 8% in 2013 as compared with growth of 5.5% in 2012. He added that "We are very optimistic about the growth of this market in Brazil. We have lots of space to grow."

A government official said in October 2012 that President Mr Dilma Rousseff's economic team predicted that economic growth in South America's largest economy grew at the fastest pace in more than two years in the third quarter, at an annualized rate of between 5% and 6%.

Mr Martinez said that as part of the government's initiative to ready the country to host the sporting events, new homes in Brazil will use steel in their construction instead of brick and mortar.

Mr Martinez said that demand growth for steel used in cars will grow about 4% in 2012 and may expand next year as middle class families purchase their first vehicle in 2013.

Source - Bloomberg

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