Brazilian flats steelmaker may resume activities at its Cubatao mill, in the city of same name in the state of Sao Paulo by 2022, if domestic demand is strong enough, a company’s executive told Reuters.
The Cubatao mill was shutdown in 2015 due to weak domestic demand. The mill has a 4.5 million mt/year capacity.
Usiminas CEO Sergio Leite said last year the Cubatao mill wouldn’t resume activities “before 2021.”
Leite told Reuters Brazil’s economic growth has been weaker than expected.
He said the mill wouldn’t resume if such weak economic growth persists.
Leite said Usiminas could at least could resume a blast furnace at Cubatao. He said the company wound’t decide on Cubatao this year, however, the steelmaker’s board could vote the matter in 2022. Then, in two years, by 2022, the mill could resume activities.
Leite said he sees positive indicators Brazil’s domestic steel demand is improving, following recent airport and port concessions by the Brazilian government.