According to the Brazilian Steel Institute (IABr), although crude steel output is anticipated to increase 2.2 percent year-on-year to 36 million metric tons (mt) in 2012, there will still be a large volume of idle capacity. One reason for the lower estimate is ArcelorMittal's Tubarao mill in Brazil reducing output this year, according to news reports Tuesday. Approximately 40 percent of Brazil's steelmaking capacity is idle, partly as a result of heavy imports.
Meanwhile, steel consumption is poised to increase 5.4 percent to 26.4 million mt this year, as exports rise 0.7 percent to 10.9 million mt and imports fall 3.8 percent to 3.6 million mt.