Steel is one of the most important materials in Brazilian industry, both in the formation of its various structures and in its economic activity. Whether for large producers, entrepreneurs who supply the material directly to consumers, or construction professionals, understanding how the steel industry works in Brazil is crucial.
Understanding the fundamentals of your production allows you to have a little more control when evaluating the material, its quality, and the cost-benefit ratio. We at Ceará Steel Group We always value the quality of materials, service and customer satisfaction.
Follow and learn more about the steel industry, its history, and how it operates in this sector.
Steelmaking is a branch of industry focused on the production and processing of steel and cast iron. It is a subset of metallurgy, which is a field of study that encompasses all metal production, from extraction to manufacturing techniques.
This is one of the world's leading industries today, with billions of tons extracted globally. China is one of the largest producers and consumers of crude steel, and is also one of the largest importers of iron ore mined in Brazil.
The steel industry is essential to modern life, both in urban and rural areas. Here are some of the key sectors it influences.
Whether constructing houses, buildings, warehouses, or other types of structures, steel is always included as part of the structure. Because it's a versatile and resistant material, both against corrosion and physical impact, it's ideal for various constructions, especially tall buildings, where flexibility is paramount.
It's also easy to see how important steel is in the production of cars, motorcycles, trucks, and other vehicles. This material is used in both bodywork and interior parts. With the right material variations, the vehicle becomes stronger and lighter, making it easier to control.
Similarly, steel is also used in the production of many of the machines and tools required for agricultural production. This material has opened up numerous possibilities for the creation of more durable tools and efficient methodologies for growing agricultural products—essential to keep up with the growing global demand for food.
The history of this sector in Brazil is relatively recent. The first major steel manufacturing company was Companhia Siderúrgica Belgo-Mineira, founded in 1921. This venture was made possible thanks to the participation of Acieries Meetings of Burbach-Eich-Dudelange, which led to the construction of the João Monlevade plant in 1939.
However, the intention to produce steel domestically already existed in 1920, with Companhia Eletro Metalúrgica Brasileira, founded in Ribeirão Preto. Its construction was completed in 1922, also involving the acquisition of several iron deposits to supply its production.
The Brazilian steel industry entered into crisis with the stock market crash of 1929, which eventually led to the bankruptcy of Companhia Eletro Metalúrgica Brasileira.
After the market recovered, several other companies emerged with state participation. In 1946, Companhia Siderúrgica Nacional (CSN) was founded. During the 1950s, several other companies also emerged and expanded Brazilian steel production.
However, in the 1990s, several of them joined a wave of privatizations in the sector. This led to the current state of the industry, which is dominated by large private groups and investors, both national and international.
All steel mills worldwide today are classified based on two criteria: production process and type of steel they produce. See the classifications here.
Within their processes, they can be divided into two categories. The first refers to integrated mills, which participate in all stages of steel production, including reduction, refining, and rolling;
Second, we have semi-integrated mills, which don't perform the reduction process, working with pig iron, sponge iron, or scrap for steel recycling. Aside from the fact that they don't handle the initial process, their operation is quite similar.
There are also so-called non-integrated plants, which handle only one stage of steel production. However, this category is not widely used in the steel industry.
It is also common to classify plants based on their predominant product.
If a plant produces more than one type of material, then the one that makes up the largest percentage of its production is considered its main product.
As an industry and field of knowledge, the steel industry has come a long way in the modern market. See the main fields of activity that are part of this chain.
It all starts with ore extraction. Large companies seek out iron ore deposits large enough to supply the industry and establish an extraction and mining process that can be sustained for a long time. Naturally, the focus is on the highest-quality ore, with low oxygen content in its formation.
Extraction isn't necessarily part of the steel production chain, as iron can be used for other purposes. However, it's still a fundamental stage in its manufacture.
The main area when we think about steelmaking is its actual production. This is the work carried out within the plants to refine iron and then transform it into the different types of products. types of steel that we find today.
Each variation has specific characteristics, which can be adjusted according to its purpose. Steel used in structures, parts, or as a support base, for example, has different characteristics.
After steel is manufactured, it needs to be delivered to stores, other industries, or the end consumer, depending on its intended use. This is the most focused aspect of the logistics of this material, from production planning to... efficient inventory management.
The final field of activity in the steel industry is the implementation of steel in structures or civil construction. This is where professionals use the material to build objects that can be used in everyday life.
The steel industry involves a series of stages before the material can be used in machinery manufacturing or construction. Learn about these stages and the importance of each here.
Again, the steelmaking process begins with iron mining. The quality of the raw material significantly affects the quality of the steel produced. The lower the air content, for example, the easier it is to produce high-quality steel with greater flexibility and durability.
In addition to iron, coal and lime are also used to create the necessary metal alloy. The charge is prepared before moving on to the next stage. The coal and lime are mixed to remove impurities.
After preparation, the materials are placed in a high-intensity furnace. The oxygen present in the mixture is heated to up to 1000°C and blown out of the furnace. This process adds heat to the coal, which begins to "cook" the iron.
The result is the formation of pig iron, a metal alloy that serves as the basis for steel but still has a very high carbon content. Once the material is fully processed, it moves on to the next stage.
This is where the steel itself is obtained. The pig iron is melted down again, which may also include the addition of scrap for recycling. Remaining impurities and excess carbon are removed from the mixture. The final carbon content influences the type of steel obtained. At the end of the process, most of the material is left in a semi-solid state and used to produce ingots or blooms.
All semi-finished pieces produced at the end of the refinement process are rolled or forged, either into screws, plates, or other parts, depending on the purpose. Rolling is the most common process, allowing for the creation of parts on an industrial scale, while forging is used to produce custom shapes.
After making all the pieces, what remains is to make the proper storage of steel and begin distribution. Small parts, such as screws, can be shipped to stores, where they are sold to the end consumer, while others are supplied directly to other industries.
Because it's a lightweight and durable material, it tends to be easier to store and transport than other types of metal, including raw iron. However, some care must still be taken to prevent the material from deteriorating during transit or while in storage.
One of the most important characteristics of steel is that it is eternally recyclable. In other words, any scrap piece can be returned and used to produce new steel, without any loss of quality. This is possible thanks to technology used in its manufacture and maintenance.
As mentioned, steel recycling simply involves reintroducing it into the production chain at the refining stage. Scrap must be prepared in advance to avoid adding too many impurities, but the steel itself can be included in the mix, which will produce new parts and ingots.
As mentioned, steel production in Brazil is primarily carried out by private companies, many of which were acquired during the wave of privatizations in the 1990s. Here are some of the main companies operating in the Brazilian steel industry today.
One of the giants in the national steel industry today is Sinobras, a member of the Aço Cearense Group. It is the first integrated steel mill in the North and Northeast regions, headquartered in Marabá, Pará. Founded in 1986, the company already has extensive experience in domestic steel production.
AcelorMittal is a large conglomerate of multinational steel companies. It is the result of the merger of two companies, Mittal Steel Company and Arcelor, in 2006. Today, its headquarters are in Luxembourg, but it also has a division operating in Brazil.
A Luxembourg-based company, it also has a significant stake in Brazilian steel production. Like many other companies, its main operations are in Minas Gerais, the state home to the country's main iron ore deposits. It was formed in 2011, separating from AcelorMittal.
Usiminas is one of the leading companies today in the production and distribution of flat-rolled steel, both cold and hot, as well as coils, coated steel, and plates. Its products are primarily used in automotive production, capital goods, and consumer goods.
The Votorantim Group is a Brazilian multinational company that participates in several production areas focused on engineering and civil construction, which includes steel production in Brazil.
Gerdau is currently a major producer of long steel products headquartered in São Paulo, exporting to several countries in the Americas. It is also one of the leading recyclers of steel and iron scrap in Latin America.
The steel industry is one of the most important industries in Brazil and around the world. Several production and distribution sectors depend on high-quality steel to operate and meet market demands. That's why Grupo Aço Cearense forms significant partnerships throughout Brazil, such as with Sinobras.
If you want to keep up with the latest news from Grupo Aço Cearense, check out more content from our blog and also visit our website to learn more about Sinobras and our other partners!
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