Brazilian longs producer Aço Verde Brasil (AVB) posted a net profit of BRL 377.6 million ($75.6 million) for 2023, 30.4 percent less than in 2022.
Under the same comparative basis, net sales revenues declined by 9.0 percent to BRL 1.722 billion, while the EBITDA declined by 33.1 percent to BRL 537.9 million and the EBITDA margin declined by 11.3 percentage points to 31.2 percent.
By volume, sales of rolled products increased by 15.1 percent to 405,500 mt.
According to AVB’s president Silvia Nascimento, the poor performance reflects chiefly the competition from imported steel products, chiefly from China at alleged dumping prices. In her view, such competition is negatively affecting the operating rate of the steel industry in Brazil.
For 2024, Nascimento expects a production in the range of 510,000 mt to 530,000 mt, against 410,000 mt in 2023.
Located in Açailandia, in the northeastern state of Maranhão, AVD has an 850,000 mt yearly production capacity. Its production line includes wire rod, rebar, billets and pig iron.
USD = BRL 4.99 (March 28)