Domestic economic recovery likely to boost Brazil's steel production in 2013

Steel News  |  2013-05-20 02:23:48   |   By

The recovery of domestic economy may raise the country's steel output by around 6% in 2013, says the Brazil Steel Institute in its yearly forecast

SAO PAULO (Scrap Monster) : The recovery of domestic economy may raise the country’s steel output by around 6% in 2013, says the Brazil Steel Institute in its yearly forecast.

The Institute forecasts steel production to reach 36.51 million tons during the year, increasing by 5.8% compared to the previous year. The domestic sales are forecast to touch 23.25 million tonnes, rising by 7.6% year-on-year.

The exports from the country are expected to touch 8.94 million tons, showing a decrease of 8.8%. The revenues from exports are also forecast to reduce by 5.7 %. The capacity utilization rate of the Brazilian steel mills is expected to be around 75% during the year.

The Brazil Steel Institute points out that the above forecasts are based on a projected GDP growth of 3.7%. Any sign of weakening economy may force the Institute to revise the above estimates downwards. The Institute also suggests that the taxes in the Brazilian steel sector should be sizably cut down to enable the country to compete with the other steel making countries of the world.