IBS: Steel output climbs 3.5% in Apr

Crude steel output in Brazil climbed 3.5% in April as steelmakers worked at 97% of production capacity, according to latest data from the Brazilian steel association (IBS). Steelmakers produced 2.758Mt in April compared to 2.66Mt in April 2004. However, production was down slightly from 2.761Mt in March. In the past 12 months, Brazil has produced 32.97Mt of crude steel. Flat steel production increased 10% in April to 2.01Mt compared to 1.83Mt in April 2004. Pig iron production also rose in April, climbing 4% to 2.87Mt from 2.77Mt in April 2004. Production of semi-finished steel products fell to 591,000t in April, a decrease of 4% compared to 615,400t in April 2004. Belo Horizonte-based Usiminas, which recently completed consolidation of flat-steel subsidiary Cosipa, was Brazil's leading producer in April, with production rising 3% to 755,500t compared to April 2004. Gerdau Acominas, a unit of Porto Alegre-based long steel maker Gerdau, was next at 609,600t in April, an increase of 1.3% compared to April 2004. Integrated steelmaker CSN followed with 459,300t in April, down 0.7% from 462,400 in April 2004. Domestic sales for flat steel products rose 3% in April to 854,500t. However, long steel products tumbled 19% to 473,500t as construction in the civil sector has not yet absorbed excess stocks built up at end-2004, IBS said. Weaker-than-expected domestic demand, especially for long steel products, resulted in a 12% increase to export sales in April, IBS said. Export sales of flat products climbed to 445,600t in April compared to 398,300t in April 2004. The value of flat steel exports rocketed to US$511mn, up 31% from US$391mn in April 2004. Long steel products saw the biggest surge in export sales, rising 50% to 240,400t compared to 160,500t in April 2004.