September 08, 2008

IBS forecast Brazil steel production in 2007 to be up by 10% YoY

According to the figures from Brazilian Iron and Steel Sector Association, this year Brazilian steel output is reported at 34 million tonnes in 2007 so far, up by 9.9% YoY as compared to 2006. IBS in a statement said that in 2008 Brazil is expected to produce 37.6 million tonnes up by 10.8% more than 2007, though installed capacity will be at 41 million tonnes by the end of 2007.

It added that the internal sales are due to jump by 18% in 2007 to 20.6 million tonnes while apparent consumption is to rise 19.7% to 22.1 million tonnes. Internal sales of flat steel products is expected to increase 17.8% while apparent consumption to go up 20.5% mainly due to record automotive production in addition to improvement in the oil and gas sectors, agricultural heavy machinery and appliances. IBS without providing figures said that long steel owes its performance to renewed housing construction driven by better availability of mortgage credit.

In exports, IBS said it expects Brazil to ship abroad 10.5 million tonnes of steel this year, 2 million tonnes less than previously forecast and 15.6% less than in 2006. But because of increased steel prices, this year's export revenues are to total USD 6.8 million, only 1.4% less than last year.

IBS said that Brazil is forecast to import 1.6 million tonnes of steel in 2007 or 12% less than in 2006.