What is the relevance of Brazilian steel products to the economy

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How does steel exports affect the national economy? To address this issue in the necessary depth, we interviewed Luiz Maluza, who is the commercial manager at Wilson Sons . According to him, Brazil is currently the 5th largest net exporter, which means — the result of total exports minus total imports — of steel in the world. “We have 29 plants installed and managed by 10 different groups, which are independent. Furthermore, we have an installed capacity of 50 million tons per year, but we produce around 35 million” summarizes the expert. Somewhere between 40% and 50% of this quantity is exported: a variation that largely depends on the state of the domestic market. In most cases, the greater the consumption in the country, the lower the export rates, as selling steel to the domestic market is more profitable for the Brazilian industry, that is, if the domestic market is doing poorly, exports rise.

What is the relevance of exporting Brazilian phone number data steel products to the world economy? As Brazil is among the main names in steel exports in the world, it is no secret that these products are relevant in the global economy. According to Maluza, “exports are mainly directed to the South American market”. Peru, Colombia, Argentina and Chile are buyers of Brazilian steel, due to its high quality application in the automobile industry, for example. Other countries also frequently consume our steel — this is the case of the United States, Spain, Portugal and the Netherlands. However, since , Brazil has faced a powerful competitor when it comes to exports: China, the largest steel producer in the world. Due to the large number of factories and surplus labor, China is able to produce cheaper steel than other producers. “It is worth remembering that the low cost sometimes comes up against the poor quality of the product.



Despite this, in certain applications of this commodity , this factor ends up having no importance for those who buy”, explains the commercial manager. Another fact that draws attention in this regard is a proposed restriction made by the European Union (EU) in relation to the purchase of steel produced on Brazilian soil. According to an article published by Valor Econômico at the beginning of , the EU intends to establish limits on the entry of steel products. The idea behind the measure is to favor local production and, in a way, represents the market dispute experienced by the sector in recent years. On the other hand, a survey conducted by the Ministry of Industry, Foreign Trade and Services (Mdic) on Brazilian exports made in the first half of , showed a 38% growth in the sale of steel products to the USA, as reported by Época Negócios .