Brazil’s steel output highest since October 2018
Brazilian steel mills continued to boost production in April. The sector remains focused on the domestic market, supplying volumes higher than in the pre-pandemic period.
In April, Brazilian production of crude steel improved by 59% to 3.1 million t year-on-year, the highest since October 2018, according to the Brazilian Institute of Steel (Instituto Aco Brasil, IABr). Finished steel production rose by 77% to 2.3 million t y-o-y, while semis output added just 6% to 638, 000 t. Domestic sales reached 1.9 million t, surging by 96%, in line with apparent steel consumption of steel products that also improved by the same amount to 2.2 million t.
The IABr stated that the current demand for steel products reflects the recovery of the main consuming sectors and the formation of stocks in the context of market volatility caused by the boom in commodity prices. “In the case of the steel industry, almost all inputs and raw materials and, in particular, essentials such as iron ore and scrap, continue to significantly increase in prices, with a strong impact on the sector’s production costs,” IABr said.
Over the first four months of the year, Brazil’s crude steel production rose by 16% to 11.8 million t, finished steel output by 21% to 8.6 million t. Semis output decreased by 6% year-on-year to 2.5 million t.
In January-April, apparent steel consumption increased by 44% to 9 million t year-on-year in the context of higher domestic sales (+41% to 7.9 million t). Imports demonstrated a significant increase by 99% to 1.4 million t. At the same time, external shipments decreased by 14% to 3.5 million t.