Boston, MA -- (SBWIRE) -- 08/31/2012 -- This report is focused on the potential threat of de-industrialisation which currently hangs over the Brazilian steel and aluminium industries. They face increasing pressure from the rising competition of cheaper imports, as well as a lag between demand growth and capacity expansion, which is holding both industries back and restricting profit potential.

Growth Spurt In 2014 And 2016 Due To Global Games

Domestic flat product sales growth is set to slow to 6% in 2012 from just under 12% in 2011 when 4.29million tonnes (mnt) were sold. Buyers are likely to reduce their stocks by 10% this year to 900thousand tonnes (kt). Slow sales, stock draw-downs and rising import levels will impact on steel output, prompting concerns of deindustrialisation. The imports growth will prevent Usiminas, Brazil's biggest flat steelmaker, and rivals CSN and ArcelorMittal Brazil from hiking prices for types of plates and hot- and cold-rolled products.

View Full Report Details and Table of Contents

Insufficient rolling capacity and high costs of production will prompt a rise in exports of slab, which is the current focus of capacity expansion, and imports of semi-finished and finished steel products. Brazil will fail to add value to output and there is a danger of import reliance on some steel products. At the same time, high exports of slab have the potential to make the Brazilian steel industry extremely vulnerable to an oversupplied global market. Nevertheless, Brazilian longs production will be bolstered by growth in the domestic construction sector, which is being assisted by rising property values and preparations to host the 2014 FIFA World Cup and the 2016 Olympic Games in Rio de Janeiro. More troubling for Brazil is the sign that automotive output, which helped fuel most of the growth in flat products, is in decline.

About Fast Market Research
Fast Market Research is an online aggregator and distributor of market research and business information. Representing the world's top research publishers and analysts, we provide quick and easy access to the best competitive intelligence available. Our unbiased, expert staff will help you find the right research to fit your requirements and your budget. For more information about these or related research reports, please visit our website at http://www.fastmr.com or call us at 1.800.844.8156.

Browse all Materials research reports at Fast Market Research

You may also be interested in these related reports:

- Netherlands Metals Report Q3 2012
- South Korea Metals Report Q3 2012
- South Africa Metals Report Q3 2012
- France Metals Report Q3 2012
- Spain Metals Report Q3 2012
- United States Metals Report Q3 2012
- Austria Metals Report Q3 2012
- Sweden Metals Report Q3 2012
- Mexico Metals Report Q3 2012
- China Metals Report Q3 2012