Brazilian steel industry to increase output capacity

Brazilian steel industry to increase output capacity

Brazilian steel industry will invest $7.4 billion by the end of 2008 in order to increase its production capacity by 30%, according to the statement made by Brazilian Steel Institute (BSI). The trade association representing Brazilian steel companies stated that the investments half of which will come from the companies' own revenues will assist Brazil to increase crude steel output from the current 34 million mts per year to 44 million mts. It is also reported that the rest of the investments will be financed by Brazilian and foreign banks. The BSI expressed that the capacity increase will take domestic supplies under control and will maintain Brazil's strong steel exports. In 2003, Brazil produced 31.1 million mts of crude steel with an increase of 5.2% compared to 2002. Domestic sales fell by 2.6% to 15.4 million mts last year while exports soared by 11.1% to 13 million mts. Asia was Brazil's largest export market due to China's increasing demand for steel. In addition, China imported 2.4 million mts of steel from Brazil in 2003.