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/images/Featured_News_Icons/SSAB.png)
SSAB adjusts output in weak Q3, readies for Q4 rebound
SSAB said lower plate prices in the US were the primary reason for reduced results in the second quarter. With a dismal Q3 outlook, the Swedish steelmaker is adjusting production across its facilities. That includes moving up its annual US mill outage in anticipation of a better Q4. SSAB Americas Revenues in the Americas segment […]
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/images/Featured_News_Icons/worldsteel_logo.png)
Global steel production dipped in June
Global steel output eased 2% in June following May’s 14-month high, according to World Steel Association’s (worldsteel) latest release.
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/images/Featured_News_Icons/ArcelorMittal.png)
Union rejects proposal to end strike at ArcelorMittal Mexico
The local mining union has rejected a proposal to end the labor strike at ArcelorMittal Mexico’s Lazaro Cardenas mill and Las Truchas mine in Michoacán, Mexico.
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/images/Featured_News_Icons/NLMK.png)
NLMK mill targeted in Ukrainian drone attack
Novolipetsk Steel’s (NLMK) mill in Lipetsk, Russia, was the target of a raid by Ukrainian drones on Sunday, according to a Reuters report.
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/2024/06/USS-logo.png)
USS and Nippon clarify position on US trade case participation
U.S. Steel and Nippon Steel explained their position on USS’ participation in US trade cases should their proposed nearly $15-billion merger deal go through. The companies hope to close the deal by the end of the year.