Economic downturn caused Brazilian steel industry to delay $3.2 billion in investments

The economic downturn in Brazil caused the local steel industry to delay some $3.2 billion in investments between January 2014 and June 2016, according to data from the country’s steel association, IABr.

According to IABr’s data, from January 2014 to June 2016, 83 mills halted their operations, resulting in a loss of 40,000 jobs.

IABr’s executive president, Marco Polo de Mello, told EBC, a Brazilian government news agency, perspectives for a retake at the local steel industry don’t seem positive in the short term.

“The measures the government took were insufficient. Interest rates fell, which is an important, fundamental trend, but the way they are, in the better of the scenarios, you’d need at least seven months to have a reasonable [interest] rate to see the economy start growing again,” he said.

The executive warned the local steel industry is still operating at low levels.

Polo de Mello said the solution to help the local steel industry includes having the government stimulate exports and giving local steelmakers increased competitiveness to compete in the export markets.