IBS sees 2004 steel sales up 43.1% to US$18bn

The Brazilian Steel Institute (IBS) forecast on Wednesday afternoon that 2004 sales will total 50.4bn reais (US$18.3bn), up 43.1% on 2003. IBS president José Armando Campos said that the improved performance is the result of higher steel prices and increased demand, especially from China. Campos explained that even measures taken by the Chinese government to reduce the rate of that country's economic growth will not curb the sector's expansion. World steel production rose 8.9% in 2004 and Chinese demand increased 22%. The IBS sees Brazil's 2004 steel production totaling 32.9Mt, up 5.7% on 2003. Sales to the Brazilian market have so far risen 16.2% to 17.9Mt. Campos emphasized the performance of rolled products, which have picked up over the year despite the fact that the civil construction segment is still in recovery. The IBS reports that 2004 exports have fallen 7.3% so far to 11.6Mt from 12Mt in 2003. The IBS forecasts that in 2005 the segment's sales will rise 25.6% compared with 2004 to 63.3bn reais. Production is seen rising 2.1% to 33.6Mt and domestic sales are forecast to climb 9.5%. Exports are seen falling to 11.63Mt in 2005 from 12Mt in 2004. Domestic consumption is expected to surpass the 20Mt mark for the first time ever, rising 9.8% to 20.2Mt. by Mônica Ciarelli