Brazilian steelmaker ArcelorMittal Brazil may reconsider investments following the reduction of an existing “payback” exports program, from 2 percent to 0.1 percent, according to a media report by Diario do Comercio.
Jefferson de Paula, CEO at ArcelorMittal South America Long, said the company may suspend projects, including a planned BRL 1.5 billion ($556 million) investment at the steelmaker’s Joao Monlevade mill, located in the city of same name in the state of Minas Gerais.
The executive said instability in Brazil may hinder prospects for the multi-million-dollar project, telling Diario he was uncertain if the Monlevade project would advance, given the existing scenario in Brazil.
He said the company considers a new price hike, in addition to a recently imposed 3 percent increase in long steel prices, as reported by SteelOrbis.
USD = BRL 3.70 (June 13)