New concessions and local infrastructure projects may increase demand for the local steel industry, Brazilian officials said this week during the Brazil Steel Congress, held in Brasilia August 20-21.
Officials, including local minister of mines and energy, Bento Albuquerte, and Onyx Lorenzoni, from the president’s office, said the Bolsonaro administration is looking to create “multiple conditions” to benefit the local steel segment and its surrounding producing chains.
Minister Albuquerte said the local oil and gas sector might also drive demand for the local steel sector.
“There will be opportunities for the steel segment and related chains to supply demand coming from concession and production sharing contracts … already signed with numerous oil companies,” said Albuquerque, adding production sharing contracts in the latest 14th and 15th concession lots should generate some BRL 450 billion ($110.8 billion) in investments.
The mines and energy minister said the local government is also working to solve issues that would assure energy and gas natural supply with reduced costs for the Brazilian industrial segment. Additionally, Brazil is also working to help restoring the regular supply of iron ore, following Vale’s Brumadinho incident.
Minister Lorenzoni mentioned Brazil’s efforts on the public and private partnerships (PPPs) side in areas like infrastructure and energy. Lorenzoni also promised to reduce taxes, and was applauded by the Brazil Steel Congress audience.
USD = BRL 4.06 (Aug. 22)