Brazil’s Companhia Siderúrgica do Pecém (CSP) has obtained a Local Content Certification that will allow it to produce steel for the oil and gas industry in the country.
The South American steelmaker received the certification on Jan 20 from the National Agency of Petroleum and Natural Gas and Biofuels (ANP), qualifying its Ceará plant to supply steel plates for the energy industry in the South American country, the company said in a statement on Thursday.
This certification is necessary for companies like CSP to be able to sell products to state oil companies like Petrobras, which are mandated to use only steel plates that are 100pc locally made, CSP said though it did not disclose the volume of products it would produce for the oil and gas industry.
In 2020, the South American steelmaker sold 409,554mnt of steel plates in Brazil. During the year it also exported 812,592mt steel plates to the US, 447,087mt to China, 234,651mt to Mexico, 208,495mt to Turkey, and 202,091mt to Canada.
Brazil’s crude steel output fell by 4.9pc to 30.9mn mt in 2020, from 32.5mn mt in 2019, according to the latest Brazilian Steel Institute data. On the other hand, in December 2020, Brazilian crude steel production rose by 17.2pc to 2.8mn mt, from 2.4mn mt in the prior-year period.