Companhia Siderurgica do Pecem, an integrated slab producer located in the Brazilian northeastern state of Ceara, is now considering the expansion of its slab capacity, rather than implementing a hot rolling line, according to the local media.
Sources have mentioned that after the invasion of Ukraine by Russia and the partial destruction of slab production capacity in the country, it would make more sense to expand the yearly 3.0 million mt slab production capacity of Pecem, rather than implementing a rolling line in the plant.
The additional slab production would have immediate demand, not only due to the shortage in the merchant slab market, but also due to the domestic demand, as Usiminas feeds on external slab sources since it idled the crude steel production at its Cubatao plant in 2016.
On the other hand, an increased HRC production would require an additional source of demand, such as the settlement of a major automaker in the region.
With the recent announcement that Vale has put for sale its capital stake at Pecem, shared with Posco and Dongkuk Steel, it is possible that that a decision about the expansion could be postponed.
