Usiminas to idle heavy plate laminator due to weak domestic demand

Monday, 28 September 2015 00:40:10 (GMT+3)   |   Sao Paulo
       

As a result of a weak demand in the Brazilian domestic market, local steelmaker Usiminas will idle a 1 million mt heavy plate laminator at its mill in Cubatao, Sao Paulo, the company told SteelOrbis.

The company said it will adopt such a measure to adequate its production to the current weak demand the local steel sector faces, adding that the measure will help the company preserve its competitiveness in the current scenario.

Despite not disclosing for how long the equipment will be idled, Usiminas said the halt in the operations of the Cubatao laminator will start “in the next few days.”

Usiminas has one heavy plate laminator at its Ipatinga mill, in the city of Ipatinga, Minas Gerais, as well as another equipment in the Cubatao mill, in the same state. Both laminators have a 1 million mt capacity.

The Ipatinga mill will concentrate both Usiminas demand and client support for heavy plates.

In May this year, Usiminas “temporarily” idled two blast furnaces, effective May 31.

The company also reduced pig iron production by 120,000 mt per month. The company told SteelOrbis it has no idea on whether the Ipatinga blast furnace will resume operations.

As the BRL has being strongly devaluated compared to the USD, sources consider the possibility of price hikes in Usiminas heavy plates. However, despite the rumors, there have been no official announcements from the company so far.


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