Brazilian steelmaker ArcelorMittal Brazil is currently operating at full capacity at its Tubarao mill, located in the city of Vitoria, in the state of Espirito Santo, a company’s executive told reporters in the sidelines of the Brazil Steel Congress, held in Brasilia, from August 22-23.
“We’ve been operating [flats] at full capacity, with all our three blast furnaces, since 2014,” said Benjamin Baptista Filho, CEO at ArcelorMittal Brazil.
Unfazed by the crisis that hit the local steel sector in the past few years, the flats operations of ArcelorMittal Brazil are currently exporting 100 percent of the 3 million mt of slab it produces per year.
The flats operations of ArcelorMittal Brazil produce slab, HRC, CRC and galvanized steel. With an installed capacity of 7 million mt of steel per year, ArcelorMittal Brazil through its Tubarao mill is exporting 60 percent of its overall steel output, as domestic demand remains weak.
“Out of the 7 million mt/year capacity we have, 4 million mt is comprised of finished products, including HRC, CRC and galvanized steel,” Baptista Filho told reporters. “Out of the 4 million mt finished steel output, we’re exporting 1.5 million mt.”
The Tubarao mill is strategically located on the Brazilian coast and has its own port, which makes it easier to export its flats overseas.
“We’re beside Vale, so we don’t have much feedstock inventory. We’re competitive to fight in the global market, but sometimes it’s difficult to compete, depending on price levels,” Filho said.