Brazilian steel association forecasting strong recovery in 2010

Brazilian steel association forecasting strong recovery in 2010. Brazilian steel association IBS is forecasting a strong sector recovery in 2010 with crude steel production reaching 33.1Mt and consumption of about 22.9Mt, president Flávio Azevedo said during a press conference in Rio de Janeiro. In addition, IBS expects exports to total 11Mt in 2010, up 16% compared to this year's estimated 9.5Mt. "Our perspectives are good for 2010," Azevedo told reporters. "Not as good as 2008, but apparent per capita consumption levels are expected to return to above 100kg." The optimism is due to projects for the 2014 World Cup and 2016 Olympics, and pre-salt petroleum undertakings off the Brazilian coast. IBS predicts these events will require some 7.8Mt of steel until 2016, with 1.3Mt for projects related to the Olympics, 4.5Mt for World Cup initiatives and 2Mt for the oil sector. However, Azevedo said Brazilian consumption will still be well below Germany's 400kg per capita and China's 300kg. At one point in 2008, Brazilian consumption reached 124kg. IBS is estimating that local steelmakers will produce 26.7Mt of crude steel this year, a 20.8% decrease from 2008, and Brazilian consumption will be 18.8Mt, down 21.9% from last year. Production of rolled products is put at 20.4Mt, down 17.4%, and semi-finished output is expected to drop 2.5% to 5.92Mt.