In the last week in a Latin American steel Sao Paulo meeting, an analyst pointed out by comparing the cost of plant:: The cost of new green steel in Brazil’s is higher than 44% and 69% in India and China. Brazil built a rolling mill of slab factory with the cost of $1800 / ton,however, in India and China were U.S. $ 1,000 / tonne and 550 U.S. dollars / ton.
In addition, the analysts also said that pressures of raw material cost persist, the global ERW Steel pipe overcapacity and continue to promote raw material prices rising also caused for concern. Brazilian steel manufacturers import coking coal rely on Australia, Colombia and the United States. Current iron ore price is $ 180 / ton, next month may be reduced to 170 U.S. dollars / ton.
Brazilian steel bars and Steel Channel Angles demand is still strong, Automobile production industry to flourish, finished steel consumption in 2008 is higher than the level before the economic crisis. However, the appreciation of Brazilian currency intensified import competition, industry participants need to consider carefully expansion plans. November 2010, the Brazilian steelmaker Usiminas canceled plans to build a slab plant in Minas Gerais state, Black Brazilian National Metallurgical Company (CSN) also gave up new steel projects.