ArcelorMittal Brazil will reduce rolled steel production by 1.3 million tons in 2023

The Brazilian steel division of the ArcelorMittal corporation announced its intention to reduce the production of steel products in 2023 by 1.3 million tons. SteelOrbis reports about it with the reference to local mass media.

The reduction will cover all production divisions of the company. In 2022, ArcelorMittal Brazil produced 12.7 million tons of flat and long-rolled products, while in 2023 this figure may fall to 11.4 million tons.

The Tubarao plant, the country’s largest steel producer, plans to cut slab production by about 20% and flat products – by 10%. At the same time, the plant’s three blast furnaces will remain in operation, at least in the short term.

The decrease in production volumes is due to the high level of steel imports into the country and the refusal of the foreign trade authorities to introduce a 25% import duty on all steel products. The current duty rate is 9.6-12.8%. According to the Brazilian steel industry, this duty is not enough to cope with the supply of cheap Russian and Chinese steel.

As GMK Center reported earlier, the Brazilian mining and steel company Gerdau reported about suspension of production at the Maracanaú steel plant located in the northeastern state of Ceara. The reason for the stoppage is the saturation of the local market with imported products from Russia and China.

Also, steel production in Brazil in August 2023 decreased by 5.9% compared to August 2022 – to 2.7 million tons. In January-August, Brazilian steelmakers produced 21.3 million tons of steel, which is 8.3% less y/y.