Strong demand to boost profits of Brazilian producers
Analysts forecast that strong steel demand will increase Brazilian steel producers' 2004 profits significantly against the profits recorded in 2003.
It is stated that the surging demand from
China is the main driver behind these positive profit forecasts. Chinese demand increased prices of certain raw materials used in
steelmaking. Therefore, mining companies, which supply raw materials to the steel producers, are expected to see strong profits with record sales in 2004.
Brazil's
automotive industry has also increased the demand for steel products and reported record
production figures in 2004.
The forecasts indicate that steel producers Gerdau, Usiminas, Belgo-Mineira and CST will report higher profit figures.