Usiminas’ Cubatao rolling mill operating below profit levels

Usiminas’ rolling facility at its Cubatao mill, located in the city of same name in the state of Sao Paulo, is reportedly operating below profit levels, Brazilian newspaper Estadao said this week.

 

Citing a company analysis, the media report said the rolling mill is producing 80,000 mt of steel per month, well below the 120,000 mt/month level the steelmaker considered to be “profitable” in a previous study.

 

The Cubatao mill stopped producing slab about a year ago, and has since purchased the product from third party companies and suppliers, including Vale’s co-owned slab producer Companhia Siderurgica Nacional (CSP).

 

As domestic demand remains sluggish in Brazil, Usiminas has not resumes producing slab, nor increased capacity at its rolling mill to 120,000 mt/month.