According to him, the expectation is for a slight drop in sales, since the comparison basis is very high after sequential increases of 4% and 19% in 2020 and 2021, respectively.
Moreover, sales may also be affected by an economic growth deceleration, since estimates of gross domestic product for Brazil are hovering around 0.5%, compared with a possible GDP growth in 2021 of nearly 4.5%.
According to Brazilian steel institute Aço Brasil, crude steel production in 2021 increased 14.7% compared with 2020 to 36.03 million mt with the industry operating at 73% of installed capacity. Finished steel domestic shipments totaled 21.97 million mt last year, a 15% jump on year, while apparent consumption increased 23.2% on year to 26.41 million mt.
Much of the market restocking in 2021 was supplied by imports, which totaled 4.97 million mt, an increase of 144.1% from 2020, customs data showed.
However, much of this volume is still to be absorbed by the market, according to sources.
Entering the Chinese New Year holiday, market trading is sluggish
Trade & Pricing: Europe's billet market trend 2024-2025
