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.
