The Brazilian industry, which consumes more than 300 different types of steel, is facing serious problems, according to ABIMAQ, the association representing the sector. Steel supply is portrayed as absolutely inadequate. This is reported by various sources besides Valor.
High steel prices weigh on the Brazilian industry
Despite some relief in steel supply, which until recently was severely limited, market participants say steel prices are very high and there could be further increases. Such increases could hurt returns for Brazilian steel-consuming sectors.
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Availability hits rock bottom
“It’s a mess. It’s never been this bad. … We are at the worst moment in steel supply shortages,” said José Velloso, president of the Brazilian Association of Machinery Manufacturers (ABIMAQ).
Civil engineering sector shows concern about steel price increases
In the civil engineering segment, concern is focused on contracts already signed that have not factored in steel price increases.
“Such a situation creates a great risk, as companies may not be able to complete civil engineering projects due to the increased cost of products, including steel,” said José Carlos Martins, president of the Brazilian Chamber of Civil Engineering (CBIC).
Brazilian steel association IABr sees no supply shortage
In turn, the Brazilian Steel Association (IABr) said the domestic steel industry is operating at 67.3 percent of its capacity and is able to meet domestic demand for steel products.
Source: abimaq.org.br, cbic.org.br, acobrasil.org.br, valor.globo.com
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