Davis Index: Market Intelligence for the Global Metals and Recycled Materials Markets

In 2021, Usiminas forecasts sales of 8.5-9mn mt of iron ore and finished steel sales above 4mn mt with 1.1-1.2mn mt in Q1 2021. 


The Brazilian steel and iron ore producer, which reported its earnings on Feb 10 indicated that its iron ore sales increased by 1pc to 8.7mn mt in 2020 against 2019. Finished steel sales fell by 9.3pc to 3.7mn mt in 2020 from 4.1mn mt in 2019. The company’s crude steel production at the Ipatinga plant fell by 15.4pc to 2.8mn mt in 2020 from 3.3mn mt the previous year. 


Usiminas’ revenues increased by 8pc to BRL16.1bn ($3bn) in 2020 compared to a year ago. Adjusted EBITDA increased by 62pc to BRL3.2bn in 2020 compared to BRL2bn the prior year. The adjusted EBITDA margin was 20pc in 2020, up 7pc points compared to 13pc in 2019. Net income increased by 243pc to BRL1.3bn in 2020 from BRL377mn in 2019.


In Q4 2020, Usiminas sold 1.1mn mt of steel, an increase of 12pc against the same quarter a year ago and up by 21pc against the preceding quarter. Iron ore sales declined by 1pc to 2.3mn mt in 2020 from the same quarter a year ago, though steel sales reached the highest quarterly volume since Q4 2015.


In Q4 2020, revenues rose by 41pc to BRL5.5bn against the same year-ago quarter. The domestic market accounted for 76pc of the revenue source with exports making up 24pc. Adjusted EBITDA increased by 243pc to BRL1.6bn in Q4 2020 compared to the same quarter in 2019. Net income in the final 2020 quarter increased by 866pc to BRL1.9bn in 2020 compared to the same year-ago period. 


In the consolidated year, Usiminas contributed BRL799mn toward capital expenditures, up 15.7pc from 2019 when it invested BRL690mn. The steelmaker plans to invest BRL1.5bn in 2021 which will be used toward the dry stacking project at Mineração Usiminas (BRL600), the renovation of blast furnace 3 at the Ipatinga plant (BRL600), and general maintenance.


Usiminas’ subsidiaries include Mineração Usiminas, Soluções Usiminas, Musa, and Usiminas Mecânica. Musa’s iron ore production increased by 18.2pc in 2020 to 8.7mn mt against 7.4mn mt the prior year as other sites were idle. 



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