Brazilian raw steel production reached record levels in 2007, rising 9.3 percent from 2006, the Brazilian Steel Institute (IBS) has announced.
Brazilian steelmakers produced 33.784 million metric tons (mt) of crude steel in 2007, up from 30.901 million mt in 2006, the IBS reports. While the total steel production in 2007 was less than the predicted 33.958 million mt, it was still Brazil's highest-ever annual steel production total.
Brazil's production of rolled steel products in 2007 totaled 25.578 million mt, up 9.1 percent from the previous year. The IBS states that Brazil's strong demand for rolled products in 2007 came mostly from the civil construction sector, as housing and infrastructure projects were spurred by declining local interest rates and the government's economic growth plan.
Meanwhile, flats production in 2007 totaled 15.728 million mt, up 9.2 percent from the previous year. According to the IBS, Brazil's flats sector benefited from the booming Brazilian automotive industry, as well as from the surging oil and natural gas markets and the strong naval sector.
On the sales side, Brazil's domestic sales increased an impressive 16.9 percent in 2007 (from the previous year) to 20.486 million mt. High-value rolled products, especially flat products used to make cars, trucks, pipelines and white goods made up the bulk of domestic sales in 2007, the IBS said.
Domestic sales of rolled products in Brazil increased 17.1 percent in 2007 from the previous year, while sales of semi-finished products, including slabs, blooms and billets, rose 11.6 percent.
Export sales, however, declined by 17.5 percent in 2007 to 9.645 million mt, due to steelmakers shifting their production to meet the local demand, the IBS said.