BRAZIL: Steelmakers Estimate Higher Output And Lower Sales In 2017

The Brazilian Steel Institute (IABr), which represents steelmakers that operate in the country, kept unchanged its forecast for the local steel output in 2017 at 32.420 million tons, a 3.8% increase compared to last year. However, the estimate for domestic steel sales was revised down to 16.310 million tons, a 1.3% decrease. Previously, IABR expected a 1.3% increase.

Steel exports, meanwhile, are projected to rise 9.1% in 2017, to 14.659 million tons, compared with a previous forecast of a 6.4% increase. Exports revenue should grow by 32.6%, to US$ 7.420 billion.

Steel imports are expected to rise 18.8%, to 2,232 million tons, more than the 6.6% increase anticipated by the IABr in April. Imports revenue should grow by 11.8%, to US$ 1.951 billion. Steel consumption - which includes domestic sales plus imports by distributors and consumers - is expected to rise 1.1%, to 18.418 million tons. The previous projection was a 2.9% increase.

According to the IABr chairman, Marco Polo de Mello Lopes, the steel sector is still at a delicate moment, with little internal consumption.

"The market has not recovered yet and will not resume during 2017," he told a news conference.

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