BRAZIL STEEL
NEWS
14
EDITION
December | 2010
2010: Record consumption and importation of
steel, despite domestic capacity surplus
Brazil should end 2010 with a record apparent
challenged before Brazil's Supreme Court by entities
consumption of steel products, impacted mainly by
representing both employers and employees.
increased importation. According to the forecast by the
The 2010 Brazilian output of crude steel has been
Brazil Steel Institute (Brazil Steel), the year's apparent
forecast by the Brazil Steel Institute at 33.1 Mt, 25% up
consumption should reach 26.8 Mt, 44% up from
from
the previous year. Domestic sales should increase
2009 and 11% from 2008, prior to the global
30.4% over 2009, reaching 21.3 Mt. Exportations of
economic crisis. The 2010 increase is due to
steel products in the period should reach 8.7 Mt and US$
importations, estimated at 5.9 Mt for the current year,
5.5 billion, a mere 1% increase in
154% up from last year and 123%
Apparent consumption of Steel Products
volume compared to 2009.
higher compared to 2008. “In the
10³ t
post-crisis, Latin America started to 30000
Within the Country's
attract increasing exportations, 25000
macroeconomic forecasts for 2011,
20000
which is clearly perceived in Brazil.
the Brazil Steel Institute estimates next
15000
The consumption record
year's apparent consumption of steel
10000
unfortunately did not mean a
products
at 28.3 Mt, a 6% increase.
5000
production record for the country,
“However, we have not been able to
0
despite the exceeding capacity”,
2007
2008
2009
2010*
estimate overseas trade figures, which
stated the Chairman of the Administration Board of the
will depend on the evolution of Brazil's competitiveness
Brazil Steel, André B. Gerdau Johannpeter.
before unfair competition, high tax burdens and
Increased importation largely reflects the valued
currency exchange rates, supply surpluses in
international markets and state incentives towards
importation. Such incentives have jeopardized the
development of the industry and generation of jobs in
the country, and have had their constitutionality
exchange rate policies. We understand that, in a more
competitive, post-crisis scenario, it becomes of higher
importance to preserve the domestic market and
prioritize sustainable growth”, said the Executive
President of the Brazil Steel Institute, Marco Polo de
Mello Lopes.
André B. Gerdau Johannpeter
Chairman of the Administration Board of the Brazil Steel
Marco Polo de Mello Lopes
CEO of the Brazil Steel
1
International Scenario
Steel supply surplus leads
to unfair competition
Since the 2008 global economic
crisis, there has been an imbalance
between the world's production
capacity and consumption of steel
products. The world's production
capacity surplus is currently around
500 Mt, according to the WorldSteel
Association. Therefore, steel prices in
the world market are artificially low,
and finance conditions incompatible
with usual market practices. Some
large producers/exporters also
subsidize production and
international sales. Given this
context, there has been excessive
growth in Brazilian importations of
steel and steel-intensive goods,
which enhances the priority towards
preserving the domestic market.
Steel, building the
2014 World Cup
Launched in late 2009, the
program “Steel: Building the 2014
World Cup” took, through a
roadshow, information about steel
products to the tournament's 12
host cities. An initiative by the
Brazilian Center for Steel
Construction (CBCA), managed by
the Brazil Steel, the roadshow is
proof of the sector's confidence in
the domestic market. The goal was
presenting to businesspeople
around the country the
construction potential of steel to
supply any kind of work.
- Industrialized building
solutions with steel structures,
besides efficient and accurate, are
viable aternatives and in tune with
economic development,
environmental and urban
sustainability. They do not
generate waste, reduce
transportation needs and erecting
equipment and, at the end of their
useful lives, are totally recyclable –
says CBCA Executive Director
Eduardo Zanotti. For more
information, www.cbcaiabr.org.br/copa2014 .
Brazil's steel industry understands
it necessary to reinforce measures
contributing to the improvement of
competitiveness of the industry, as
well as of steel consuming sectors.
The Brazilian steel industry is currently
fully prepared to meet domestic
demand, both in terms of volume and
quality. High investments have been
made in the modernization of the
mills, product development and
capacity adjustment to market
demands.
Governmental investment
programs – such as the 2014 World
Cup, Project Oil&Gas, “My Home, My
Life”, etc – may contribute to the
Country's actual sustained economic
growth. The challenge is moving
from the current 100 kg steel/inhab.
to 400 kg. These programs may be
inducers of use of steel and are
scheduled to happen. Importations
must be watched carefully, so their
increase does not inhibit investments.
This year's steel consumption must
reach a record 26.8 Mt, though
unfortunatelly 20% of that will come
from importation. With a strong and
preserved domestic market, the
Brazilian steel industry may keep its
investments, and consequently
generate jobs.
China
Reference
2010 Crude Steel
Capacity (Mt)
185
USA/
Canada
2010 Apparent
Europe
33
136
Consumption
CIS
126
98
310
(crude steel)
51
WORLD
68
India
554
1924
64
132
788
184
Capacity Surplus
Japan
149
103
Latin
America
1370
12
75
63
603
Other countries
10
26
95
Source: Worldsteel
3
2
:
69
239
229
Steel in everyday lives
Whether during
the Sunday lunch,
on the way to work
or doing house
chores, steel is
always present in
your everyday lives.
Resistant, durable
a n d 1 0 0 %
recyclable, steel is
essential for the
production of homes, cars, household appliances and
consumer goods in general. It is so present that sometimes it
becomes invisible. The Brazil Steel Institute sought updated
data to know the actual participation of steel in a car,
refrigerator, oven and civil construction, both in weight and
in products' sales value.
Upon request of the Brazil Steel Institute, the
Technological Research Institute (IRT) disassembled two
cars, one stove and one refrigerator. They identified that
steel weighs a lot in such goods, but costs little to the final
consumer. Over 50% of the weight of raw materials used in
cars and refrigerators, for example, is steel, though its
participation in the selling value of such goods is below
10%. In civil construction, the data refer to the study by the
Getulio Vargas Foundation (FGV-SP) of December 2009,
considering average features of homes offered in the São
Paulo metropolitan region.
Steelville presents
construction solutions
More than 21 thousand people visited the Steelville, a
sample city presented by the Brazil Steel in São Paulo for the
first time during ExpoSteel 2010. The Steelville was later
visited by architects, engineers, students, congress
representatives, governmental authorities and industry and
construction representatives during the 4th Cities
Conference (Brasília), INOVATEC (Belo Horizonte),
ExpoAcabamento (Porto Alegre) and RioInfraEstrutura (Rio
de Janeiro).
With approximately 1,500 m2, the Steelville presented
how steel may be exploited in architectural projects such as
houses, buildings and urban equipment, facades and
walkways. Sustainability and ecoefficiency in the steel
production process were also addressed by the Village.
Several authorities and professionals were surprised by
the lack of knowledge reagarding the products presented.
At the end of the five events, the exhibit became a
thinktank for all visitors who came to understand how steel
can help transform cities and improve urban spaces.
Steel participates a lot, but costs little!
Registrations open for
Steel Conference
Registrations are open for the 22nd Brazilian Steel
Conference, organized by the Brazil Steel Institute, between
June 01-03, 2011, at Transamérica Expo Center in São
Paulo. ExpoSteel, a trade show gathering steel and mining
companies, and suppliers of equipment, services and
technological innovation for the steel production chain, will
also take place. Besides delegates, exhibitors will receive
visitors who will be granted free access to the fair.
21.745 visitors in 5 cities: São Paulo, Rio de Janeiro,
Porto Alegre, Belo Horizonte and Brasília.
Perspectives for
Brazilian policies
For the second year in a row, visitors will have access to
the Steelville, a sample city demonstrating steel applications
in civil construction. Approximately 3,500 people visited
ExpoSteel and the Steelville in 2010, with 700 executives
participating of the congress. For more information,
www.acobrasil.org.br/congresso2011 .
Armando Monteiro, president of CNI.
The Brazil Steel Institute gathered in Rio de Janeiro, on
November 25, around 100 representatives of the steelmetallurgic chain. At the event, senator-elect Armando
Monteiro evaluated the new scenario of national policies
after the election, expressing concern with issues related to
tax reform, competitiveness and political reform.
33
STEEL CO-PRODUCTS
Sustainable Solutions
Acting for a sustainable present and future is the
responsibility of all, and a priority at the Brazil Steel
Institute. Because of that, the Brazil Steel has created
the Brazil Steel Co-Products Center – CCABrasil, an
initiative aimed to contribute to the preservation of
non-renewable resources and development of the
country.
CCABrasil, created with the support of the
associated members and colaborators of the Brazil Steel
Institute, is an important step towards fostering the
development of co-products that meet a wide range of
applications, both in terms of quality and sustainability.
Just like the quality of Brazilian steel is worldlyrenowned, CCABrasil will act to ensure the same quality
to the sector's other products, in another movement of
the Brazilian steel industry towards sustainable
development, with special attention paid to the
environment. The sector's companies invested R$ 778
million in 2009 in environmental improvements of
production- and operation-related processes.
4
Such investment aimed at modernization and
maintenance of environmental control and treatment
systems, such as dust removal, gas washing, exhaust
monitors, waste management, and others.
Besides the amount invested in production- and
operation-related actions, the sector's companies have
set aside, during the year, R$ 389.4 million for external
actions concerning the environment, such as
environmental education, green areas management
and environmental preservation and recuperation of
outdoor areas. These data are in the sector's
Sustainability Report, organized by the Brazil Steel
based on GRI directives.
Aware of the sector's relevance for the country's
economy and development, the Brazil Steel believes this
report may effectively foster interaction between the
sector and its different publics – companies, clients,
consumers, government and the society. The sector is
commited to sustainable economic development.
Application of the steel industry's sustainable
co-products:
Benefits generated by the use of
steel co-products:
Studies and research made in Brazil and overseas
have proved the concrete possibility of using steel coproducts in civil construction, pavement, ceramics,
agriculture, cement and concrete, for example:
- Steel shop aggregate (final fractions): soil pH
correction, slope containment, production of
phosphated fertilizers, cement and concrete;
- Steel shop aggregate (gravel and rougher fractions):
landscaping, railway ballast, parking lots,
recuperation of roads in general, road base and subbase and asphalt production;
- Blast furnace aggregate: production of cement,
concret, and mineral wool.
The use of steel co-products generates the following
environmental benefits:
- Reduction of consumption of non-renewable
natural resources, such as those from mining of
rocks, sand and other primary materials;
- Transformation of a potential environmental liability
into asset, for it avoids unnecessary disposal of
materials in landfills and allows its application for
noble purposes, such as infrastructure works;
- Reduction of greenhouse gas emissions in the
production of cement, due to the use of steel coproduct instead of clinker.
%
FIGURES
Steel ouptut increases in November
Brazil's steel ouptut in November 2010 was of 2.6 Mt,
Exportations of steel products in November 2010 reached
11.2% down from October and 2.8% from the same month
987 thousand tonnes amounting to US$ 646 million.
in 2009. Regarding rolled products, the November output
Therefore, 2010 exportations reached 7.9 Mt and US$ 5.0
of 2.1 Mt was a reduction of 9.1% compared to the
billion, a fall of 1.1% in volume and an increase of 15.9% in
previous month and an increase of 5.3% compated to the
value over the same period of the previous year.
same month in the previous year. With such results, the
Importations in November reached 454 thousand tonnes
2010 accumulated output totaled 30.4 Mt of crude steel
(US$ 465 million), totaling 5.5 Mt of steel products imported
and 24.1 Mt of rolled products, an increase of respectively
in the year, 158.5% up from the same period of the previous
27.1% and 32.5% over the same period of 2009.
year.
As for domestic sales, November 2010 results showed
Brazil's apparent consumption of steel products in
1.6 Mt of products, 4.3% down from the previous month,
November reached 2.1 Mt, totaling 24.6 Mt in 2010. These
and 0.8% down from the same period in 2009. 2010
figures represent an increase of respectively 10.9% and
accumulated sales of 19.6 Mt present a growth of 32.3%
46.2% over the same period of the previous year.
over the same period of the previous year.
Crude Steel Production
3.500
Unid.: 10³ t
3.000
2.500
2.000
1.500
1.000
500
0
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Importation
700
Unid.: 10³ t
600
500
400
300
200
100
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Brazil Steel Institute | Phone (21) 3445-6300 | www.acobrasil.org.br | [email protected]