Brazilian crude steel production in May dropped 8.5 percent, year-on-year, to 2.7 million mt, the nation’s steel association, IABr, said, attributing the weaker activity in the local steel sector to a two-week nationwide strike by truck drivers, which hit most Brazilian producing sectors. IABr said the strike affected steel shipments, led to a lack of raw materials and resulted in the provisional halt of 16 blast furnaces, 10 steel shops and 15 rolling mills.
IABr said domestic steel sales in May declined 17.8 percent, year-on-year, to 1.2 million mt. Apparent steel consumption in May was 1.4 million mt, 15.5 percent down, year-on-year.
Despite the decline in crude steel production, domestic sales and apparent steel consumption, Brazilian steel imports were not hit by the demonstrations. The local steel industry imported 242,000 mt of steel in May, 3.9 percent up, year-on-year.
As for the accumulated period of January to May this year, Brazilian crude steel production reached 14.3 million mt, 1.5 percent up, year-on-year. The growth was limited because of the strike, IABr said.
Domestic steel sales in the January-May period rose 7.7 percent, year-on-year, to 7.1 million. Apparent steel consumption in the five-month period was 8.1 million mt, 7.2 percent up, year-on-year. Brazilian steel imports in the January-May period rose 1 percent, year-on-year, to 1 million mt.