RIO DE JANEIRO, BRAZIL – Brazilian steel producers worked at full speed in May. Last month, crude steel production grew by 40.1% compared to the same period last year. A total of 3.16 million tons were produced.
Production for the current year reached 14.94 million tons, up 20.3% compared to January-May 2020, data recently released by the Brazil Steel Institute.
According to the data, apparent consumption of steel products in May was 2.5 million tons, a volume 83% higher than the same period in 2020, and in the first five months, the increase was 50.7% compared to the same period in 2020, reaching 5 million tons.
Domestic sales increased by 73.9% compared to May 2020, reaching 2.1 million tons. Cumulatively, 10.0 million tons of steel products were sold, representing a 46.4% increase.
According to Aço Brasil, imports increased by over 200% in volume last month. A total of 550,000 tons and US$488 million were imported, up 267.7% in volume and 195.3% in value.
In total, consumers imported 2 million tons, an increase of 128.4% compared to the same period last year. In value terms, imports reached US$1.8 billion, increasing 92.2% in the period.
Exports, on the other hand, fell in volume terms last month. According to Aço Brazil, shipments reached 746,000 tons or US$636 million, down 12.2% or up 50.8% from the same month in 2020.
From January to May, foreign sales reached 4.3 million tons or US$3 billion. These figures represent a decrease of 13,6% and an increase of 20.5%, respectively, compared to the same period in 2020.
According to Aço Brazil CEO Marco Polo de Mello Lopes, these data show that the Brazilian steel industry is producing and placing more steel on the domestic market than was demanded before the pandemic.
According to him, this volatility can be explained by the global movement of high commodity prices. “Almost all inputs and raw materials, especially iron ore and scrap, continue to show significant price increases, which has a strong impact on the steel industry’s production costs.”