Brazil cuts annual production estimates‎

Brazil 2011 steel output forecast slashed 8 pct. Brazil's steel output is seen at 36.3 million tonnes in 2011, down 8 percent from the previous forecast of 39.4 million tonnes, the Brazilian Steel Institute said. Brazil's economy has started to show clear signs of slowing in recent months as higher interest rates, restraint on government spending and a slowing global economy take their toll on gross domestic product. The country grew at an unsustainable rate of 7.5 percent in 2010 and was expected to grow at under 4 percent this year. Local steel companies are also struggling with high iron ore prices and competition from imports that have become increasing cheap due to the strength of the Brazilian real BRBY. Output of steel this year will still be up 10.5 percent from 2010 levels, the institute's latest projections showed. Brazilian steel exports were expected to reach 12.2 million tonnes this year, while imports were seen at 3.4 million tonnes, the institute said.