IABr: News about lack of steel products “unfounded”

IABr: News about lack of steel products “unfounded”

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Brazilian steel association, IABr, said claims this week that there has been a lack of steel products in Brazil are “unfounded.” IABr’s response come days after media reports said there has been a limited supply of certain steel products.

This week, SteelOrbis reported that civil construction companies in the northeast state of Ceará are mulling import steel due to high steel prices in Brazil.

However, IABr called recent news about steel price hikes “speculative.” IABr said both the rumors about limited supply and steel price hikes “are unfounded and not related to the reality the steel industry experiences,” the association said in a statement.

IABr argued that after Covid-19 hit the domestic market in H1 2020, several steelmakers resumed their blast furnaces.

“By June, the sector started supplying the domestic steel market with (production) volumes that were higher than the (volumes) seen in January and February (2020), when there was no Covid-19 and complaints about the supply of steel by any consuming sector was non-existent,” it said.

In February this year, the Brazilian steel industry posted stronger crude steel output and domestic sales volumes, which indicate a steady recovery for the local steel industry. 

Brazilian crude steel output in February rose 3.8 percent, year-over-year, to 2.8 million mt, while domestic steel sales in February totaled 1.9 million mt, 20.9 percent up, year- over-year, IABr said.

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