Brazil steel sector cuts output projections as economy, Vale weigh
A leading Brazilian steel institute cut its production forecast for the metal to a 2.2 percent rise in 2019 from 2.7 percent amid concerns over economic growth and cost increases after miner Vale’s dam burst disaster.
Institute IABr, which represents a sector made up of 30 steel mills, said on Thursday it now expects 2019 production of 36.03 million tonnes.
It also sees steel consumption, which includes domestic sales plus imports, growing 4.6 percent to 22.05 million tonnes, down from its December projection of 6.2 percent growth.
“The steel industry is now operating at 66.6 percent of installed capacity, which shows that the domestic market has not progressed as expected,” IABr Chief Executive Marco Polo de Mello Lopes told reporters in Sao Paulo.