CSN Predicts Steel Demand Surge in Brazil’s Construction Sector
Cia. Siderurgica Nacional SA (CSNA3), the third-largest Brazilian steelmaker by output, sees demand gaining speed in 2013 as the government readies Rio de Janeiro to host the soccer World Cup in 2014 and the Olympic Games in 2016.
Demand for steel used in the construction sector will grow at about 8 percent in 2013, compared with growth of 5.5 percent this year, Luis Martinez, the company’s executive director for steel sales, said in an interview in Santiago today.
“We are very optimistic about the growth of this market in Brazil,” Martinez said. “We have lots of space to grow.”
President Dilma Rousseff’s economic team predicted that economic growth in South America’s largest economy grew at the fastest pace in more than two years in the third quarter, at an annualized rate of between 5 percent and 6 percent, a government official said in October.
As part of the government’s initiative to ready the country to host the sporting events, new homes in Brazil will use steel in their construction instead of brick-and-mortar, Martinez said.
Demand growth for steel used in cars will grow about 4 percent this year and may expand next year as middle-class families purchase their first vehicle in 2013, Martinez said.
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