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Raw Steel Production Boosts Economy in Brazil with Impressive Data: Production Increased by 10% in March and Domestic Sales Rose by 20.2% Compared to February

Written by Daiane Souza
Published on 09/06/2022 at 11:38
Produção de aço bruto alavanca economia no Brasil com dados impressionantes: aumento de produtividade foi de 10% em março e vendas internas chegaram a 20,2% de alta em comparação a fevereiro - Pixabay
Produção de aço bruto alavanca economia no Brasil com dados impressionantes: aumento de produtividade foi de 10% em março e vendas internas chegaram a 20,2% de alta em comparação a fevereiro – Pixabay
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Data Reveals That The Steel Sector Is Overheated And Promises To Bring New Jobs And Financial Returns To The Industry Starting In 2022. Companies Are Positive About The Possibility Of A Recovery In The Sector During The Pandemic, Despite The Volatilities Caused By The War Between Russia And Ukraine, Which Erupted At The End Of February.  

The Steel Institute of Brazil announced that by the end of 2020, it is estimated that growth in the domestic economy in relation to sales and steel production should reach 2.5%. This development expectation is quite similar to the data already revealed by research conducted by the World Steel Association. Meanwhile, the National Institute of Steel Distributors (Inda) expects even more positive data by estimating that productivity growth in the sector should reach 3% per year, which could automate the market and the economy of Brazil. 

Another aspect that shows positivity is in relation to sales increasing by 10% in March, and a rise, compared to February, which was 20%. Numbers also revealed by Açovisa’s marketing manager, Giovani Marques da Costa, show that due to the larger amount of steel in the domestic market, the import drop will be 15% while exports will rise exponentially by 2%. This goes against ANIP’s predictions about the industry’s development, which had predicted in its report a market stagnation with an increase of only 1.2% per year. These data appear hopeful given that the Brazilian economy stagnated at 4% during the Covid-19 pandemic in 2020.

Increase In Metal Prices Shows Desperation For The Civil Construction Sector, But There Is Still A Light At The End Of The Tunnel 

https://www.youtube.com/watch?v=z5VpDlGJDto&ab_channel=LuckasRossato
Source: Rossato

In one year, iron has fallen by at least 28% of its value while steel has seen a negative variation of 33%. Despite a slight cooling in the mining market, it is important to emphasize that the accumulated increase since the pandemic still makes civil construction unfeasible. Nevertheless, reports shared by the Reuters portal show that the forecast is for a productivity increase in 2022,  which could cause prices to fall again in 2023, representing a light at the end of the tunnel. 

Lithium is also facing one of the highest prices ever seen due to the decline in production of 11% during last year, which makes many industries, such as the automotive industry, stagnate due to the lack of raw materials. This has led Elon Musk, billionaire and owner of Tesla, to invest in Brazil solely to secure a supply of the metal. 

The economic situation regarding steel has become increasingly intensive as there was a production increase of at least 10.5% in December 2021 compared to the same period in 2020. Meanwhile, crude steel production is approaching 3 million tons. The highest growth and development rates are focused on the Southern region, comprised of Santa Catarina, Rio Grande do Sul, and Paraná. According to the company  Açovisa, its unit in Piracicaba, São Paulo, saw a growth of 50%. 

On this Thursday, June 9, the price of steel coils faced a decline of 0.09%, with the daily price at 1,150 dollars, without many interferences from the international market and the war ongoing between Ukraine and Russia. 

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