FOCUS: Usiminas loses lead in Brazilian flat steel market amid automotive weakness

Brazilian flat-rolled steel producer Usiminas has lost the lead in its domestic market due to its strong exposure to the automotive sector, which suffered greatly from the Covid-19 pandemic, sources told Fastmarkets.

Brazil’s steel industry took a heavy hit from regional restrictions in the country to contain the spread of the coronavirus. Demand fell significantly in April and recovered at a slow pace throughout the remainder of the second quarter, particularly for flat steel.
Data from Instituto Aço Brasil, the country’s steelmakers’ association, showed that domestic sales of flat steel totaled 1.92 million tonnes during the second quarter, down by 29.1% from 2.71 million tonnes a year earlier, and also 28.3% lower than the 2.68 million tonnes sold in the first three months of 2020.
Domestic rankings
Usiminas’ domestic shipments totaled 506,000 tonnes in April-June, a 43.9% decrease from 902,000 tonnes in the first quarter, according to the company’s earnings report released on July 30.

The company, which has a steel-producing unit each in the states of Minas Gerais and São...

Published

Renato Rostás

August 19, 2020

09:30 GMT

São Paulo