The Brazilian Steel Institute (IBS) estimates that steel production in the country will be approximately 34.3 million tons this year, up from 30.9 million tons in 2006. Brazilian steel firms invested $18.9 billion over the years 1998–2006, with most of this investment going to the maintenance and modernization of existing facilities. A new round of investment that is expected to total $17.2 billion is already under way and is expected to increase capacity to 52.2 million tons a year. New companies entering the market are expected to funnel $5.8 billion into steel investment and add 6.7 million tons of steel production capacity. Future projects by already established firms are expected to add 19 million tons of production capacity. In total, yearly production is expected to reach 77 million tons annually within the next 10 years. Consolidation and a strong domestic market—boosted by government plans to increase state-led investment in infrastructure—are helping Brazil’s steel market. Also helping the market is a trend towards buying steel slabs in developing countries which are then finished in developed countries.

Source: Financial Times