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Try the Free AI Search EngineBrazilian Steel Market Shows Resilience Amidst COP30 Preparations: Activity Analysis and Procurement Insights
Brazil’s steel market demonstrates continued activity despite the backdrop of the upcoming COP30 summit in Belém. Plant activity levels have shown fluctuations, but overall trend upward with stabilization at the end of the evaluation period. The increase is not related to “Cop 30 success hinges on GHG cuts, finance response“, “EU-Staaten beschließen Klimaziel für 2040“, nor “EU-Staaten verschieben Start des Emissionshandels um ein Jahr“, as no explicit connection can be made between the global climate negotiations and plant-level production changes based on the provided information.
The mean steel plant activity in Brazil peaked at 45% in July and September before dropping drastically to 17% in October. Gerdau Pindamonhangaba saw a low of 31% in June and July, climbing to 38% in October. Aperam Timóteo remained stable at 46-48%. ArcelorMittal Juiz de Fora maintained the highest activity levels, peaking at 58% in October. The mean activity in October is influenced by drops in Gerdau Pindamonhangaba activity in the previous months, while the other plants maintained production.
Gerdau Pindamonhangaba, located in São Paulo, operates a 620 ttpa EAF-based steel plant, producing finished rolled products like bars and wire rods for the building, energy, and machinery sectors. The plant holds a ResponsibleSteel Certification. Its activity fluctuated, starting at 32% in May and initially decreasing to 31% in June and July, before increasing to 38% in October, exceeding all previous periods under evaluation. Given the lack of correlation between plant activity and climate policy from the news articles “Cop 30 success hinges on GHG cuts, finance response”, “EU-Staaten beschließen Klimaziel für 2040”, and “EU-Staaten verschieben Start des Emissionshandels um ein Jahr”, steel buyers should confirm that no local issues have affected its plant operation.
Aperam Timóteo, situated in Minas Gerais, is an integrated steel plant with a 900 ttpa crude steel capacity, utilizing both BF/BOF and EAF technologies. They produce stainless steel, electrical steel, and special carbon steels for automotive, construction, energy, and other sectors. Aperam aims to reduce its environmental footprint by using charcoal from cultivated eucalyptus forests, replacing coke. The plant is ISO14001 and ResponsibleSteel certified. Activity at Aperam Timóteo remained consistently high at 46-48% throughout the observed period.
ArcelorMittal Juiz de Fora, also in Minas Gerais, has a 1100 ttpa EAF-based steel plant alongside a BF. The plant manufactures rebar, wire rod, and bars, primarily for the construction sector. The plant is ResponsibleSteel certified. Throughout the observed period, this plant has produced consistently high activity, from 56% in May, growing to 58% in October.
The significant drop in mean steel plant activity in Brazil in October is primarily influenced by the change in activity at Gerdau Pindamonhangaba in the previous months. Given that “Cop 30 success hinges on GHG cuts, finance response”, “EU-Staaten beschließen Klimaziel für 2040”, and “EU-Staaten verschieben Start des Emissionshandels um ein Jahr” do not offer direct explanations, the steel buyers should closely monitor the Gerdau Pindamonhangaba steel plant and confirm the reasons behind the change in production to prepare for possible price adjustments. Given the stable activity at Aperam Timóteo and ArcelorMittal Juiz de Fora, steel buyers might consider shifting procurement to these plants if supply from Gerdau Pindamonhangaba is constrained.