The workshop of Smederevo Steel Mill, recently acquired by a Chinese firm. (Photo: Ren Yan from People’s Daily)
The workshop of Smederevo Steel Mill, recently acquired by a Chinese firm. (Photo: Ren Yan from People’s Daily)

Brazil’s crude steel production totaled 30.2 million tons in 2016, down 9.2 percent from 2015, the Brazilian Steel Institute announced on Tuesday.

Production of laminated steel amounted to 20.9 million tons, which represents a 7.7 percent fall from 2015.

Foreign trade involving steel also fell last year. Imports of steel were down 41.4 percent from 2015, totaling 1.9 million tons. Exports of steel, on the other hand, had only a light fall, totaling 13.4 million tons, down 2.1 percent from 2015.

Consumption of steel products, which is measured by adding domestic production and imports and subtracting exports, totaled 18.2 million tons in 2016, down 14.4 percent from 2015.

According to the Institute, the reduction can be seen as a reflection of the poor national economic performance last year, especially in the industrial sector.

Marco Polo de Melo, executive president of the Brazilian Steel Institute, told governmental news agency, Agencia Brasil, that the steel sector is going through an unheard of crisis.

“2016 had the worst crisis the steel industry faced in all its history. Even 2008, when there was a global crisis, was not so bad,” he told Agencia Brasil.

According to Polo, in addition to the recession which is plaguing Brazilian economy in general, the main clients of the steel industry, namely the automotive, machinery and construction sectors, have been facing poor results. Enditem

Source: Xinhua/NewsGhana.com.gh

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