IABr: Brazil’s steel capacity utilization less than 50%
31 Jul 2020 16:14 reported by Raul Lee
The executive president of the Brazil Steel Institute (IABr), Marco Polo de Mello Lopes, reported that there are 10 blast furnaces remain paralyzed amid the total 32 furnaces in the country, and that the inactivity of the sector remains extremely high. Lopes explained that the sector started the year with 62% of capacity utilization, which reached 42% in April and today is only 48.5%.
Lopes said the problem was that high idleness implies unemployment. According to official data, from March to May 2020, the country's manufacturing industry had 315,940 layoffs. Therefore, it must export the country's steel products, and defensive measures w were needed to improve competitiveness, according to the executive president.
In addition, Lopes commented that China and South Korea have more than half the world's excess capacity and are the two countries with the highest number of trade defense cases filed against them.
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