Strong demand to boost profits of Brazilian producers

Strong demand to boost profits of Brazilian producers

Analysts forecast that strong steel demand will increase Brazilian steel producers' 2004 profits significantly against the profits recorded in 2003. It is stated that the surging demand from China is the main driver behind these positive profit forecasts. Chinese demand increased prices of certain raw materials used in steelmaking. Therefore, mining companies, which supply raw materials to the steel producers, are expected to see strong profits with record sales in 2004. Brazil's automotive industry has also increased the demand for steel products and reported record production figures in 2004. The forecasts indicate that steel producers Gerdau, Usiminas, Belgo-Mineira and CST will report higher profit figures.