International Steel Mills
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/images/Featured_News_Icons/brazil_flag.png)
CRU: Usiminas restarts blast furnace in challenging market
Written by CRU Americas
January 26, 2024
Brazilian steel maker Usiminas has resumed operations at blast furnace (BF) No. 3 at its Ipatinga works in the state of Minas Gerais.
The restart comes after a BRL2.7-billion ($546-million) refurbishment on the unit, which has capacity of three million metric tons (mt) per year.
The company also idled the 600,000 mt/y BF No. 1 last month. And citing the impact of dramatically higher import volumes, it said it could do the same with BF No. 2.
Usiminas flags risk of rising imports from China
A 50% increase in steel imports, mainly from China, has depressed prices in Brazil. It has also led to reduced steel production, devastated Brazil’s industry, and is affecting the entire industrial production chain, according to Usiminas.
If imports continue to grow, there is a risk of shutting down the 600,000 mt/y BF No. 2, CEO Marcelo Chara said. “We need to adapt our production structure to market conditions,” he was quoted as saying in local media. “It is impossible [to increase production] with the current market conditions and the invasion of imported, subsidized steel.”
The Brazilian Steel Institute will file a complaint that China is dumping steel, he added. The country’s steel companies have unsuccessfully pressured the government for months to raise the import tariff on steel to 25% from 12%. Brazil’s steel-consuming groups have lobbied against higher duties.
Chara also said of last month’s idling: “Shutting down Blast Furnace 1 meant more than 100 layoffs and, of course, these 100 jobs were created in China to export steel to various countries.”
Features of the upgraded BF
He made his comments at a press conference held to mark the restart of Ipatinga’s modernized BF No. 3. The furnace incorporates technology that should allow Usiminas to improve operational efficiency, reduce its environmental impact, and improve working conditions.
The work included a relining, a new cooling system, and the installation of an automation system for the 50-year-old furnace. The company also modernized two continuous slab-casting machines and a primary refining area.
This article was first published by CRU. Learn more about CRU’s services at www.crugroup.com/analysis.
CRU Americas
Read more from CRU AmericasLatest in International Steel Mills
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/2023/07/CRU-Logo-2023-07-21-at-4.35.41-PM.png)
CRU: JFE looks to overseas expansion
Japanese steelmaker JFE Holdings will invest abroad as part of a drive to lift income, says group president Yoshihisa Kitano.
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/2023/07/CRU-Logo-2023-07-21-at-4.35.41-PM.png)
CRU: Gerdau mulls new steel mill in Mexico
Brazil-based Gerdau has announced it will carry out a feasibility study into the greenfield development of a 600,000 metric-ton-per-year (mt) special steel plant in Mexico.
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/images/Featured_News_Icons/US_Steel.png)
EU OKs Nippon buy of USS, hurdles remain in US
The EU has approved Tokyo-based Nippon Steel Corp.’s (NSC’s) proposed buy of U.S. Steel, a report in Reuters on Monday said.
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/images/Featured_News_Icons/Ternium-logo.png)
Ternium Mexico’s shipments slip but upturn expected
Destocking at service centers and a downturn in steel pricing impacted Ternium’s shipments in Mexico in the first quarter of the year.
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/images/Featured_News_Icons/newspaper.png)
Bula tapped as CEO of Finland’s Blastr
Bula tapped as CEO of Finland's Blastr