Brazilian steelmakers have upped their capacity utilization rate to 68.4pc from 45pc during the COVID-19 peak in the country, according to a release by Aço Brasil, the Brazilian steel institute.
The institute expects steel production to decline by 5.6pc to 30.7mn mt in 2020 and imports to fall by 17.4pc to 2mn mt. Exports are slated to fall by 16.3pc to 10.7mn mt.
In 2021, Aco Brasil expects consumption and sales to rise by 5.8pc and 5.3pc, respectively, compared to 2020. The rise will be driven by consumption in the construction and infrastructure sectors, along with uptake from the oil and gas and renewable energy sectors.
To aid the recovery of the Brazilian economy, the institute members have called for increasing the competitiveness of the steel industry. It had also sought the reversal of the reduction in the refund under the ‘Reintegra’ program from 2pc to 0.1pc.