Steel Industries sell more in the domestic market
O Estado de S. Paulo - 05/21/2008
The demand for steel products in the domestic market in the first quarter remained so heated that the steel industries have further redirected the exportation towards the domestic consumption, something that has already been taking place since last year. At the same time, among the three major publicly-held steel industries - CSN, Gerdau, and Usiminas -, only Gerdau was able to increase its production in the Country in the first quarter, which indicates that the shortage in the offer should continue. Gerdau increased the volume produced in Brazil by 17.7%, as a result of the opening of the new blast-furnace installed at Gerdau Açominas. The volume went from 1.6 million tons to 1.89 million tons in Brazil. Its rivals, however, even had small falls due to operational matters. In the case of CSN, production fell 6% in the quarter compared to the same period of the previous year - from 1.32 million to 1.24 million tons. Usiminas also had a 6% decline in the produced volume, which went from 2.1 million to 1.99 million tons, because of stoppages for the reform and upgrading of equipment. In order to meet the demand, the exports are being left at a second plan. At the moment, 70% to 80% of the production of the companies is aimed at the Brazilian market, a rate which is considered close to the limit, according to specialists, because of the existence of long-term exportation contracts. At CSN, the production aimed at the internal market went from 60% in the first quarter last year to 80% this year; at Gerdau, the rate went from 59% to 72.4% in the period, whereas at Usiminas, the national participation in sales went from 72% up to 81%. Due to the performance of the market, Gerdau reviewed its projections up for 2008. Instead of the 10% increase expected before, the group has changed the projections to 15% of growth in the domestic sales of long steel. The expectation of the market is that the focus of the companies in the domestic market may be enough to meet the demand, except for some more critical products, such as thick plates.