The Brazilian Steel Association, IABr, has updated its former forecast for sector in the full-year 2020.
Marcos Lopes, president at IABr, along with Gerdau’s vice-president (VP), Marcos Faraco, who’s also the president of IABr’s board of directors, hosted a press conference at Gerdau’s Araçariguama mill, located in the city of same name in the state of São Paulo.
Lopes said the forecast for crude steel output, domestic sales and exports has improved as compared to the last time IABr shared its assumptions for the segment in July this year.
IABr said crude steel output in the full-year 2020 should drop 6.4 percent, year-over-year, to 30.4 million mt, an improved forecast when compared to the 13.4 percent year-over-year decrease the association estimated in July.
Domestic steel sales in 2020 are forecasted to decreased 3.1 percent, year-over-year, to 18.2 million mt. The previous forecast assumed a 12.1 percent year-over-year decline to 16.5 million mt.
IABr said apparent steel consumption in 2020 is now expected to diminish 4.7 percent, year-over-year, to 19.9 million mt, from 17.9 million mt, as forecasted in July this year.
“We call this press conference as we had one of the best months of September in many years,” said Faraco while introducing the meeting, indicating there’s already an ongoing recovery in the Brazilian steel segment.
“We’re not having a v-shaped recovery. Instead, we’re having a V-shaped recovery, with the V in capital letter,” Faraco said, adding such a recovery should provide a strong basis for the months ahead.