BNamericas reported that sustainability has become increasingly important to the Brazilian steel sector and steelmakers' investments to reduce environmental impact is increasing annually, including independent pig iron producers.

Mr Amilcar Teixeira MD of sales at consultancy firm Metaldata told BNamericas that Brazil is the only country in the world that uses charcoal from large scale reforestation instead of coking coal. In 2011, 80% of the charcoal consumed by the local steel industry came from the sector's own forests.

He added that "However, we must invest in less polluting technologies in all segments of the steel chain in order to reduce particulate emissions and the generation of solid waste, promoting increased internal recycling of solid waste within the plants, as well as using it in other industries."

Mr Teixeira said that "Sustainable practices are having a positive impact on the industry's competitiveness, such as self energy supply using gases generated in the steel production process, water reuse and the use of slag for cement production, among others."

According to the executive, however, the continuing loss of competitiveness in the domestic steel industry has been of great concern for many years or even decades.

Mr Teixeira said that "The so called Custo Brasil (Brazil cost) has not been going down; on the contrary, it has gone up. This is characterized by high federal and state taxes, deficient investment in logistics infrastructure (ports, highways and railways) and the high associated costs."

According to the executive, competitiveness is also being hit by inadequate labor legislation, the lack of a qualified labor force and inadequate exchange rate policies.

Source - Business News Americas

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