Steel Industry in Brazil: Rising Profits, Idle Production Capacity
The steel construction industry in Brazil saw growth in 2023, yet production remains well below capacity.
Three sectors within the industry experienced revenue increases, according to recent studies by the Brazilian Center for Steel Construction (CBCA).
Steel structure manufacturers, which produce various metal components, saw a 6.2% revenue increase to R$17.2 ($3.1) billion. Their production rose by 2.4% to 1 million tons.
However, this represents only 46% of their 2.3 million-ton capacity. Manufacturers of steel roofing and steel decks also reported growth.
Their revenue climbed 2.5% to R$8.2 ($1.5) billion. Production increased slightly by 1.1% to 502,900 tons. Yet, this is less than half of their 1.2 million-ton capacity.
The galvanized profile sector, which includes light steel frame and drywall systems, showed the highest growth. Revenue jumped 18.7% to R$1.6 billion.
Steel Industry Update
Production rose by 12% to 107,600 tons, utilizing 39% of available capacity. Competition from imports remains a top concern for the industry.
Half of the steel roofing and steel deck manufacturers cited this as their biggest challenge. For galvanized profile producers, 39% named it their primary concern.
Marco Pollo Mello, president of Aço Brazil, criticized the influx of Chinese imports. He claimed China’s state policy aims to offload excess production to Brazil, even at a loss.
Taxation is another significant issue for the industry. It was the most cited problem for steel structure manufacturers, with 54% mentioning it.
For roofing and steel deck producers, it ranked second at 48%. Despite these challenges, the outlook for 2024 is optimistic across all three sectors.
Most manufacturers expect growth, with positive predictions ranging from 76% to 82% of respondents. The steel construction industry’s growth comes amid underutilized capacity and external pressures.
However, manufacturers remain hopeful about future prospects. Their ability to navigate these challenges will shape the industry’s trajectory in the coming years.
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This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error · Editorial responsibility: Matthias Camenzind, Editor-in-Chief
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