Usiminas Reports Decline in Sales and Announces Reduction in Exports to Focus on Domestic Steel Market

Written by Ruth Rodrigues

Published on 29/04/2022 at 17:11

Foto: Usiminas/Divulgação

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Steel Sales Experienced A Sharp Drop Due To International Conflicts, And Now, Usiminas Announced A Production Plan Focused On Domestic Sales Over The Next Quarter As A Way To Recover From The Issue

After a first quarter that was somewhat below expectations for steel sales, Usiminas recently announced that it will focus its production over the next quarter on the domestic market. By this Friday (04/29), the company intends to reduce the volume of exports to other countries and believes that this may be the best way to reverse the current sales situation.

https://twitter.com/usiminas/status/1516780782894866434

Drop In Usiminas Steel Sales Forces Company To Shift Focus From Alloy Production To Invest In The Domestic Market With A Reduction In Export Volume

The international conflicts that occurred during the first quarter of 2022, primarily related to the war between Ukraine and Russia, ended up affecting the international market in various ways, including steel exports. Thus, Usiminas currently does not see a market so focused on alloy acquisition and intends to change its current strategy to focus on the national territory for product sales.

The company announced that it has experienced a reduction in steel sales to other countries and that, throughout this second quarter, it is expected to continue declining, but focusing on the domestic market may reverse the situation in the coming months. Thus, the company announced a sales forecast of 950,000 to 1.05 million tons of steel in the second quarter, a drop of about 16% compared to the first three months of the year, which had already seen a significant decline from the last quarter of 2021.

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Thus, the commercial vice president of the steelmaker, Miguel Home, commented on the moment and stated that “The volatility in the plate market will make us reduce exports (in the second quarter). The reduction in ‘guidance’ is focused on reducing our exports. So far, nothing has emerged on the horizon that raises doubts about the viability of this business model. The world still has a very large overcapacity of steel. This does not make the accounts close, which is why we are waiting for the recovery of coke oven production. We do not have a clear forecast at this moment.”

Company Steel Exports Will See A Reduction In Volume And Production In The Company’s Blast Furnaces Will Be Altered To Focus On Domestic Sales

After not-so-positive projections for the company this quarter and the results from the last period, Usiminas is now changing its sales strategy and will decrease the flow of exports, as there is no demand for steel in the international market. Additionally, its production will also suffer changes, and the company plans to keep blast furnace 2 at the Ipatinga plant (Vale do Aço) idle at least until June, due to delays in the structural works.

This way, Usiminas will continue operating with blast furnaces 1 and 3 in Ipatinga, and blast furnace 3, the largest of the company, is expected to be shut down for 110 days starting in April of next year. This is a strategy aimed at restoring normal production over the long term, as a way to ensure greater stability in the steel market so that the company can resume exports in a more controlled and financially secure manner.

Thus, focusing on the domestic market to supply the construction, mining, and steel industries is the best alternative for Usiminas to control the decline in sales and remain resilient amid the tumultuous moment in the international market.

Usiminas Reports Decline in Sales and Announces Reduction in Exports to Focus on Domestic Steel Market

Steel Sales Experienced A Sharp Drop Due To International Conflicts, And Now, Usiminas Announced A Production Plan Focused On Domestic Sales Over The Next Quarter As A Way To Recover From The Issue

Drop In Usiminas Steel Sales Forces Company To Shift Focus From Alloy Production To Invest In The Domestic Market With A Reduction In Export Volume

Major Oil, Gas, and Energy Event Will Take Place in Brazil: Macaé Energy Will Gather Petrobras, Equinor, Prio, Among Other Suppliers and Energy Executives for Business, Networking, and Employment Opportunities

Company Steel Exports Will See A Reduction In Volume And Production In The Company’s Blast Furnaces Will Be Altered To Focus On Domestic Sales

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Usiminas Reports Decline in Sales and Announces Reduction in Exports to Focus on Domestic Steel Market

Steel Sales Experienced A Sharp Drop Due To International Conflicts, And Now, Usiminas Announced A Production Plan Focused On Domestic Sales Over The Next Quarter As A Way To Recover From The Issue

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Company Steel Exports Will See A Reduction In Volume And Production In The Company’s Blast Furnaces Will Be Altered To Focus On Domestic Sales

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