The Brazil Steel Institute (IABr) released a weak forecast for the country's steel market in 2014, it announced Monday.
According to IABr, Brazil production, sales and consumption will fall this year. Among the systemic factors that will be impacting the industry's competitiveness are the high and cumulative taxes, the cost of electricity and a strong US dollar. In the global market there's still an exceeding capacity, which reaches about 600 million metric tons, it said.
Exports will remain below average and imports will reach extremely high levels, making the use of the installed capacity remain below 70 percent.
IABr said crude steel production is expected to reach 33.3 million mt, down 2.5 percent year on year. Domestic sales should reach 21.7 million mt, down 4.9 percent year on year. According to IABr, Brazil apparent consumption should fall by 4.1 percent year on year to 25.3 million mt.