The Brazilian flat steel producer Usiminas is considering the alternative to temporarily suspend operations of its blast furnace number one, while it restarts the operation of its blast furnace number three.
The strategy, explained by CFO Thiago Rodrigues, is an alternative to face the reduced domestic demand for steel products, which in his view is derived from the high volume of imports of steel products from China at dumping prices.
The BF number one has a 600,000 mt per year pig iron production capacity, while the BF number three is emerging from a $540 million revamping, with a capacity of 3.0 million mt per year.
Rodrigues believes that the simultaneous operation of both BF’s will exceed the current demand, chiefly when considering that the BF number two, with the same capacity of BF number one, will remain in operation.
He added that the blast furnace number three, with the upgrade derived from the revamping, will have operational costs far lower and higher productivity when compared to the smaller units, resulting in financial gains for the company.
Rodrigues unveiled that, with the revamping, the blast furnace number three has showed productivity gains 30 percent higher than expectations, while the consumption of coke declined by 20 percent.