According to the Brazilian Steel Institute (IABr), Brazil’s apparent steel consumption is expected to rise 8.2 percent year on year to 21.1 million mt in 2018, while domestic steel sales are forecast to reach 18.8 million mt in the same period, increasing by 8.9 percent when compared to the previous year. The IABr forecasts Brazil will record its highest-ever annual crude steel production in 2018, with an estimated 36 million mt.
Meanwhile, it is expected that Brazil’s steel imports will reach 2.4 million mt, rising by 2.6 percent, while steel exports are foreseen to decrease by 7.2 percent to 14.2 million mt, both on year-on-year basis.
Although the Brazilian steel industry shows positive figures for 2018 when compared to the previous year, domestic sales and apparent consumption of steel are expected to continue to remain below the levels recorded in 2013.
Domestic steel sales were affected by the truckers’ strike in May this year, while the US Section 232 tariffs have had a negative influence on the steel export volume.
The Brazilian Steel Institute predicts that in 2019 domestic steel sales will increase by 5.8 percent year on year to 20 million mt with apparent steel consumption for the year expected to reach 22.4 million mt, rising by 6.2 percent year on year.