ArcelorMittal sees big opportunities in Brazil
steel
24.08.2022
Demand for steel in Latin America’s largest economy could double in a decade, steelmakers say
Demand for steel in Latin America’s largest economy could double in a decade, steelmakers say
ArcelorMittal Steelworks in Luxembourg
Photo Credit: Photo: Chris Caraba/Luxembourg Wort
Brazil’s steel consumption is set to double within the next decade due to a “huge opportunity” and the need to build more infrastructure in Latin America’s largest economy, says Luxembourg-based ArcelorMittal. Country Executive said.
Demand for industrial metals has the potential to grow, especially if Brazil “does its homework” on structural reforms, as it needs to build housing, renewable energy projects, ports and even oil and gas assets. Deaf, Jefferson de Paula President ArcelorMittal Brasil said in an interview.
“Brazil has a big opportunity,” said de Paula at the steel conference in Sao Paulo this week. “In terms of infrastructure, everything is lacking.”
Demand for steel appears to be recovering, if recent comments from executives attending a steel industry gathering are to be believed, despite tales of economic recession around the world. It may bring relief to Brazil, which has been stagnant for years compared to other countries.
According to the World Steel Association, Brazil used about 123kg of steel per capita per year last year, compared to the world average of about 233kg. Brazil’s steel industry, operating at about 67% of its capacity, will invest R$52 billion (€10.2 billion) over the next four years to modernize and expand production, according to Brazilian steel group Instituto Aço Brasil is doing. An increase in production could lead to an increase in steel exports, even as domestic demand increases.
ArcelorMittal itself has invested nearly 20 billion reais (3.9 billion euros) in the South American country, nearly 40% of which to expand its production capacity by 2024, and 2.2 billion euros from shareholders, including Vale SA, in Brazil. of steelmakers are investing to buy CSP. The acquisition, which requires regulatory approval, does not close the door on further deals in Brazil, a country where he accounts for 25% to 20% of ArcelorMittal’s financial results, he said. said Mr.
“I can never say it was the last time,” said De Paula, who is also president of the Instituto Aço Brasil. “We are always looking for opportunities.”
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