Brazilian steelmaker Companhia Siderúrgica Nacional (CSN) has idled blast furnace No 2 at its Presidente Vargas Steelworks facility in Volta Redonda because of persistently low demand, according to reports.
About 30pc of the facility’s production is generated by the blast furnace, while blast furnace No 3 produces the remaining 70pc. Presidente Vargas, which is located 141 km outside of Rio de Janeiro, has an annual production capacity of 5.8mn t (5.3mn mt) of steel.
CSN also intends to cut 2,000 jobs because of tapered demand caused by the COVID-19 pandemic.
In addition to ArcelorMittal, Brazilian steelmakers and iron ore miners, such as Usiminas, Gerdau, and Vale, have reduced or suspended production to comply with government the government’s ordinance.
Crude steel output in Brazil decreased by 8.2pc to 2.6mn mt in March from 2.8mn mt during the same month last year, according to the latest figures from the Brazilian Steel Institute.