Brazil to see decline in steel output

Brazil to see decline in steel output

Brazil's steel association IBS indicated that the country's crude steel production is expected to amount to 31.6 million tons in 2005, down 4 percent from a year earlier. Steel consumption in Brazil is expected to fall 8 percent year on year to 16.9 million tons this year due to the weak demand in sectors such as construction, as well as high interest rates and low government investments. On the other hand, IBS expects steel production to increase 4 percent and steel consumption 8.5 percent in 2006.