Brazil’s Steel Institute (IABr), the local steel association, said this week it has downgraded its growth forecast for the local steel sector this year, following a nationwide strike by truck drivers and protectionist trade measures worldwide.
IABr said domestic steel sales in 2018 should increase 5 percent, year-on-year, to 17.7 million mt, down from a previous growth assumption of 6 percent, year-on-year, or 18 million mt.
The local steel association said local crude steel output in 2018 will now rise 4.3 percent, year-on-year, to 35.8 million mt, down from a previous estimate of an 8.6 percent year-on-year growth to 37.3 million mt.
Apparent steel consumption in 2018 is expected to improve 4.9 percent, year-on-year, to 20.1 million mt, down from a previous 7 percent year-on-year growth estimate.
IABr said the growth assumptions declined due to the fact Brazil didn’t resume economic growth “as expected.” Domestic sales in H1 rose 10 percent, year-on-year, to 8.8 million mt, while apparent steel consumption in the six-month period improved 9.3 percent, year-on-year, to 10.1 million mt, thanks to improved domestic sales.
Brazil’s crude steel output in H1 increased 2.9 percent, year-on-year, to 17.2 million, while exports in the same period dropped 5.7 percent, year-on-year, to 6.9 million mt. IABr said Brazil steel imports in H1 rose 5.6 percent, year-on-year, to 1.3 million mt.