Aço Brasil expects steel use to fall by 50% in April, asks for gradual activity restart

Brazilian steel demand could fall by 50% in April compared with March after regional quarantines were enforced throughout the country to control the Covid-19 pandemic and large consumers, like automakers and capital goods manufacturers, were reducing activity, steel association Instituto Aço Brasil said on Friday March 27.

The decline during the second quarter is expected to be about 40% compared with first-quarter volumes, Aço Brasil’s president Marco Polo de Mello Lopes told journalists in a press conference. That could cut full-year 2020 apparent consumption by 20% compared with 20.65 million tonnes last year, he added.
But those were preliminary calculations made on reports by all major associates in a meeting on Friday, Lopes said. To prevent demand from decreasing dramatically, the association was calling for a gradual restart of activities in Brazil.
“At first, it was thought that paralyzing all activities in a broader quarantine was the way to go to,” Lopes said. “Now, local governments - like in the São Paulo state - are taking a step ahead and trying not to halt industrial production, which would hurt employment and the economy as a whole.”

Aço Brasil said in an official statement that, alongside health...

Published

Renato Rostás

March 30, 2020

15:33 GMT

São Paulo