Brazil's crude steel production dropped 21.4 percent in 2009 from 2008, to 26.5 million metric tons, IABr, the Brazil Steel Institute, reported Friday.
Rolled steel production dropped 18.2 percent in '09, to 11.9 mmt, including a 17.3 percent drop in flats output and a 19.3 percent drop in longs.
Exports in 2009 totaled 8.9 mmt, representing 2.9 percent percent drop compared to last year while imports totaled 2.3 mmt, down 12.2 percent over 2008. National apparent consumption of steel products fell to 18.6 mmt in 2008, which is down 22.8 percent over 2008.
IABr commented on the 2009 results, "The results of the Brazilian steel industry in 2009 show that the sector had indicators below 2008, but with signs of steady recovery that allow optimism for the near future."
Despite the year-over-year decreases, IABR said that the results for December indicate that the sector is recovering and returning to pre-crisis levels. Brazilian production of crude steel in December 2009 was 2.7 mmt, down 3.6 percent from November but up 56.4 percent compared to the same month of 2008. Rolled product production in December totaled 2.0 mmt, up 0.4 percent from November and up 115.1 percent compared with December 2008.
Brazil's steel export volumes of 805,100 mt in December were 20.9 percent higher than November , while domestic sales amounted to 1.5 mmt, down 8.0 percent from November and up 62.1 percent from December 2008. Brazil's national apparent consumption of steel products was 1.7 mmt in December, up 57.4 percent from the same month of last year.
IABr also said that preliminary data show that steel consumption from the automotive and appliance sectors has benefited from tax breaks given by the government in 2009 in order to stimulate the economy.