The Brazilian flats producer CSN is expecting its production of rebar to reach 70,000 mt this year, a company officer told SteelOrbis.
The rebar plant, located adjacent to the company’s integrated plant in Volta Redonda, state of Rio de Janeiro, has a nameplate capacity of 500,000 mt per year and has started operations during the second quarter of the year.
It is designed to produce 400,000 mt of rebar and 100,000 mt of wire rod, but can change to 100 percent rebar if necessary.
According to the source, some grades and dimensions of rebar produced by the company were already approved by the local regulation authorities, with the first commercial sales concluded on early June.
So far, all sales were destined to the domestic market, with the last deal closed at BRL2,720/mt ($1,198/mt) CFR conditions, for the 100mm thickness gauge, the source said.
The main competitors of CSN in the domestic rebar market are the Votorantim, ArcelorMittal and Gerdau, while last year’s imports of 280,000 mt have played a small role in the 4.5 million tons per year market.
CSN claims that it is in a better position to face a possible downturn of the rebar market, as it can operate on scrap or steel from the integrated plant, an alternative that its competitors don’t have.