According to the Brazilian Steel Institute, apparent flat steel consumption was 8.3 million tons between January and August 2019, a 2.1% decline over the same period in 2018. Domestic flat steel sales fell 0.5% to 7.2 million tons, and imports fell 11.1% to 907 thousand tons.

Flat steel exports is currently at the level of 1.4 million tons, a 17.2% decline, affected by the Argentine economic crisis and restrictions in other markets abroad. The expectation of the Institute (July 2019) for Apparent Consumption of Flat and Long Steel was a growth of 2.1% in 2019. According to the National Steel Distributors Institute (INDA), in the January-August 2019 period, flat steel sales grew 5.7% in the member distribution network, while purchases varied negatively 3.5% in the same period. Inventories began the year at high level – 964 thousand tons and turnover of 3.6 months in January – declined to 762 thousand ton and turnover of 2.7 months in August. For September, the National Steel Distributors Institute (INDA), forecasts stability in volumes and turnover..

Production - Ipatinga and Cubatão Plants

In the 3Q19, crude steel production in Ipatinga was 834 thousand tons, stable in relation to the 2Q19. Flat steel production in the Ipatinga and Cubatão plants totaled 1.0 million tons in the 3Q19, a 5.2% decrease over that in the 2Q19, which was 1.1 million tons. In the 3Q19, 309 thousand tons of purchased slab were processed, against 384 thousand tons in the 2Q19.

Sales

In the 3Q19, total sales were 1.0 million tons of steel, a 2.5% decrease over that in the 2Q19, which was 1.1 million tons. In the domestic market, sales reached 945 thousand tons in the 3Q19, stable in relation to the 2Q19, which was 949 thousand tons. Export sales were 88 thousand tons in the 3Q19, a 19.9% decrease in relation to export volume in the 2Q19, which was 110 thousand tons. Sales volume was 91% to domestic market and 9% to exports in the 3Q19.

Sales evolution is described in the graph below:

The main export destinations are shown below: