Brazilian steelmaker Usinas Siderurgicas de Minas Gerais has reported a 77% drop in April-June 2022-quarter net income from a year earlier, after currency swings eroded revenues and output disruption reduced sales. Usimnas has reported net profit of BRL 1.06 billion (USD 204 million) in the period. Net revenue totaled BRL 8.53 billion, down 11% YoY. Usiminas said currency volatility had led to BRL 306 million-real loss in the second quarter, against BRL 482.9 million-net gain from foreign exchange moves a year ago.Sales at Usiminas’ steel division dropped 17% after lower production as blast furnace No 2 has been halted for repair work since September 2021. Higher prices, however, improved operating margins.Looking ahead, the company said its board of directors had given approval for blast furnace No 2 at the Ipatinga Plant, scheduled to take place by the end of October 2022. The total CAPEX involved in the repairs of this Blast Furnace was maintained at BRL 35 million. The decision to resume AF2 is based on the Company’s production schedule and slab stock, in view of the expected shutdown of Blast Furnace 3 scheduled for April 2023.Additionally, Usiminas informs that, despite the decision on the return to operation of AF2, the coke plants at the Ipatinga Plant continue to present lower production availability and that efforts and mitigating measures are currently underway. This situation has created the need for the company to purchase coke in volumes higher than usual, in addition to an additional volume of natural gas to supply the deficit in internal gas production, which must be maintained for the period in which the coke plants show operational performance. The company expects a gradual recovery in the performance of the coke plants, with a more relevant effect in the 2nd half of 2023. The need for additional measures in relation to the coke plants is still being evaluated by the company.Usiminas said it expects its third-quarter steel sales to be between 0.95-1.05 million tonnes, below the 1.1 million tonnes reported in the quarter through June. In the same period in 2021, sales had reached 1.2 million tonnes.