Brazilian flats producer Usiminas was accepted as an “interested party” in anti-trust authority Cade’s current evaluation of ArcelorMittal Brazil’s acquisition of Pecem’s slab plant.
The Pecem plant, controlled by Vale, Dongkuk and Posco, was acquired by ArcelorMittal in July, subject to the usual regulatory approvals. Usiminas complained to Cade that it is dependent on the external supply of slab to its Cubatão plant, which has ended steel production activities but maintained its rolling operation.
According to Usiminas, Pecem is one of its main suppliers of slab, while ArcelorMittal is one of the world’s largest producers of rolled products, raising fears that with the conclusion of the sale, all the slab from Pecem will be diverted to ArcelorMittal operations.
Usiminas also buys slab from Ternium Brazil and less frequently from ArcelorMittal Tubarão. So far in 2022, Usiminas has imported 45,000 mt of slab.
