IABr, the Brazilian steel association, said on Tuesday there should be a weak recovery for the local steel industry, with domestic demand not recovering as previously expected.
During a conference call in Rio Tuesday, IABr said Brazilian steel sales should increase 1.3 percent in 2017 to 16.7 million mt. The forecast was reduced from a previous IABr estimate of a 3.6 percent growth in domestic steel sales in 2017.
Brazil’s apparent steel consumption in 2017 should reach 18.7 million mt, 2.9 percent up, year-on-year, same level as seen a decade ago. The forecast was reduced from a previous 3.5 percent growth estimate.
IABr estimates local crude steel output in 2017 to increase 3.8 percent, year-on-year, to 32.5 million mt. Exports in 2017 should increase 6.4 percent, year-on-year, to 14.2 million mt.
IABr said apparent steel consumption in Q1 rose 5 percent, year-on-year, to 4.5 million mt.
Crude steel production in Q1 rose 10.9 percent, year-on-year, to 8.2 million mt. The growth was mainly absorbed by the local steel industry’s increased exports, which improved 17.4 percent in Q1, year-on-year, to 3.8 million mt.
Domestic steel sales in Q1 fell 0.5 percent, year-on-year, to 3.9 million mt.