Poor demand and unappealing export market hit Brazil's steel output

摘要

RIO DE JANEIRO -- Brazilian crude steel production is set to fall 4.4 percent in 2005 to 31.5 million tonnes, due to a slack domestic market and continuing high stocks, coupled with a less attractive export market, according to the latest market forecast from Brazllian Steel Institute IBS. " Both output and sales figures have been revised downwards from the previous forecast, IBS president Luiz Andre Rico Vicente said. Exports for the year are expected to edge down 0.7 percent to 11.9 million tonnes of products, with domestic sales down 5 percent to 16.9 million tonnes, leading to a 4.5 percent decline in the year's domestic apparent consumption level to 17.5 million tonnes. Publication of the new forecast coincides with the Brazilian government's announcement of a downwards revision in the country's economic growth expectations for 2005 from 4 percent to 3.4 percent.