Despite facing a difficult year, with a low GDP growth and a higher number of Chinese imports, Brazil should have four new long steel producers by 2016, an executive said during the Alacero conference, held November 9-11 in Mexico City.
Gerdau Johannpeter, CEO at Gerdau, said four new producers should enter the Brazilian market. According to the executive, the new competitors include Ferroeste, Silat, Simec and Companhia Siderurgica Nacional (CSN).
Ferroeste should have a 600,000 mt/year rebar and wire rod capacity at its Açailandia plant, in the state of Maranhao. Silat is expected to laminate 600,000 mt/year at its plant in the city of Caucaia, Ceara, while CSN’s Volta Redonda plant, in the state of Rio de Janeiro, will produce 400,000 mt/year of rebar and other 100,000 mt/year of wire rod. Simec, which will have a plant in Pindamonhangaba, Sao Paulo, will laminate 500,000 mt.
Silat and Simec should begin operations by 2015, while Ferroeste is expected to start-up its production by 2016.
CSN is already production at its plant, but should operate at full capacity in 2015.