The steel market is boosting the Brazilian economy, and steelmakers are moving forward with bold projects.

The steel market plays a significant role in the country's economy and development, and even with the economic impacts caused by Covid-19, the sector has a positive outlook for 2021. Steel production is expected to grow 11.3% this year, while sales are expected to rise 12.9% and consumption, 15%.

According to data from the Brazilian Steel Institute, the first five months of this year saw positive results for the country's steel industry. From January to May 2021, production reached 14.9 million tons, representing an increase of 20.3% compared to the same period last year, the highest in the historical series. Today, capacity utilization is 74.4%, the highest utilization rate since October 2018.

For Ian Corrêa, vice president of Grupo Aço Cearense, the company that owns SINOBRAS – Siderúrgica Norte Brasil SA, the first integrated steel mill in the North and Northeast regions of Brazil, the steel industry is in a positive moment. "Currently, steel demand is growing due to consumption by sectors that require steel. The market is supplied, our deliveries are on time, and, thinking about the future and the growth in demand, we are resuming the SINOBRAS expansion project. We are very optimistic about the results and market forecasts," he explains.

The company, which has a production capacity of 380,000 tons of steel per year, is currently undergoing an expansion project that will increase its production capacity to 880,000 tons per year. The investment includes the installation of a second rolling mill, with a production capacity of 500,000 tons of rolled steel per year; and a new substation and 230kV transmission line, which are designed to meet the company's new electrical load needs and enable the use of energy from the Belo Monte Hydroelectric Power Plant, in which SINOBRAS is a partner as a self-producer.