[Ferro-Alloys.com]

Brazil's steel production continued to recover after the closure of the new crown pneumonia outbreak, mainly supported by strong domestic demand, and again showed a strong trend in November. At present, Brazil steel capacity utilization rate reached 68.9%, has been higher than the level before the epidemic. Brazilian steel consumption is expected to be positive in 2021.

According to the Brazilian Steel Association report, in November, Brazilian steel mills produced nearly 3 million tons of crude steel, 11% year-on-year growth; Finished steel production increased by 10% to 1.94 million tons, But production of semi-finished products fell 10% to 709,000 tons from a year earlier, this is mainly due to the drop of billet outlet. In November, Brazil's apparent steel consumption rose 16% to 2 million tonnes from a year earlier, which is mainly driven by domestic sales growth of 13% to 1.8 million tons. Among them, the domestic sales of flat materials increased 12% year on year, Longwood domestic sales rose 11% year on year, domestic sales of semi-finished products increased 95% from the same period last year.

IABr said, benefiting from government incentives, signs of recovery in steel demand, steel industry restart equipment and resume production, to meet customer order requirements. IABr expect, Brazilian steel production will fall by no more than 6% to 30.7 million tons in 2020(6.7% year-on-year in January-November); Apparent consumption would fall by only 1% to 20.8 million tonnes, domestic sales were relatively stable (down 0.5% from a year earlier) at 18.9 million tons. Due to the increased demand in the civil construction, oil, gas and renewable energy sectors, the Brazilian steel industry is optimistic about the market situation in 2021, domestic sales are expected to grow 5.3% year on year, the apparent consumption of steel will increase by 5.8% from the same period last year.