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Brazil's steel sales showing some signs of recuperation

Monday, 18 May 2009 08:40:57 (GMT+3)   |  
       

Brazilian crude steel production in April fell to 1.7 million metric tons (mt) or minus 0.1 percent compared to the previous month, and minus 41.4 percent compared to April of 2008, according to a report released by the Brazilian Steel Institute (IBS) Friday.

The report further details that Brazil's flats production in April increased to 1.5 million mt, which is up 11.5 percent compared to March, and shows a decrease of 33.8 percent compared to the same month of last year.

Brazil's total crude steel production in Q1 totaled 6.7 million mt, which, compared to last year's first quarter, shows a decrease of 41.7 percent. Flat rolled production in Q1 reached 4.9 million mt and fell 43.3 percent when compared to the same period of last year.

The IBS cites a 2.2 percent increase in domestic sales in April compared to March as an indication of the beginning of a recovery in the Brazilian steel market. Nevertheless, domestic sales in April compared to the same month of last year decreased 36.9 percent. Q1 sales decreased 42.5 percent compared to the same period of last year.

Concerning Brazilian steel exports, April's exports increased 22.3 percent compared to the previous month with a volume that reached 653,400 mt valued at US$359.7 million. As a result, April exports increased in revenue by 7.1 percent from March. Q1 exports totaled 2.1 million mt valued at US$1.4 billion. Q1 exports decreased in volume by 40.24 percent and by 41.3 percent in value when compared to 2008's figures for Q1 2008.

On the import side, Brazil's steel imports reached 136,400 mt in April, and 710,800 mt in Q1. Q1 imports represent a 2.3 percent increase over imports in last year's Q1.

Brazil's apparent steel consumption in April was 1.4 million mt (33.7 percent lower than in April of 2008), and five million mt in Q1, which reflects a decrease of 38.9 percent compared to last year's first quarter.


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