CSN foresees resumption of demand for steel in second half
Gazeta Mercantil 04/01/2009
The financial executive officer of Companhia Siderúgica Nacional (CSN), Otávio Lazcano, said he foresees a resumption of the demand in the sector in the second half of 2009. "We hope the new tax release measures announced by the Government have effects from the half of the year on", he considered, as he declared the company has been working in projects with large building companies, like Gafisa, for the construction of houses for the low income population. According to Lazcano, the construction of 1 million houses demands, at least, 300 thousand tons of steel. The projects underway, however, significantly increase such proportion.
In the first quarter of 2009, according to the officer, the sales of still presented a fall of nearly 45%. In the fourth quarter of 2008, CSN sold 829 thousand tons of steel products in the domestic market, which represents a fall of 25% compared to the 1.11 million tons of the third quarter of 2008. Compared to the sales from October to December 2007, the fall achieved 19%. In spite of the fall, the income of the company increased 48% compared to the fourth quarter of last year, to R$3.39 million (US$ 1.85 million), due to the increases in the price of the products and the greater volume of sales in the domestic market, which usually has greater margins. Year to date, the sales of steel in the domestic market amounted 4.16 million tons, compared to 3.6 million tons in the accumulated of the previous year, a 15% increase.