War in Ukraine brings Brazilian steel exports to a 830% hike

The war in Ukraine sparked by the Russian invasion of its territory, which began in February, repercussed directly on the Brazilian steel market. According to Steel Institute data, shipments of this widely used raw material to the European Union increased by more than 830 percent in the previous five months, which coincides with the period of warfare in Eastern Europe. The comparison was made year over year.

In absolute values, more than 849 thousand tonnes of steel were exported to European Union countries between January and May 2022. In 2021, in the same period, the number was much lower: 91 thousand tonnes.

Steel is the raw material used to produce plates, tubes, and beams for civil construction or manufacture more sophisticated products, such as cars and refrigerators.

Please find below the track record, in terms of TEUs, of steel shipments from Brazil in the period ranging from January 2021 to Maio 2022. The data are from DataLiner.

Steel exported from Brazil | Jan 2021 – May 2022 | TEUs

Source: DataLiner (click here to request a demo)

Also, according to the study, the Brazilian steel market was responsible for supplying 15% of the European demand for the product in 2022, filling the space left by Ukraine and Russia, unable to export due to the war. Last year, Brazil had 2% of Europe’s total share of this segment.

Brazilian business people heard by CNN confirm they have been noticing the greater European demand for steel in recent months.

Last week, during the world’s largest business fair of the steel market, which took place in Germany, Brazilian businessmen claimed that they received a “request for help” from the Europeans. The Brazilian delegation had more than 15 representatives from the sector, representing more than 30% of the national market.

“The war messed with the market. Ukraine is a giant in steel exports but cannot continue selling due to the conflict. Russia is also a major exporter, but since it has been sanctioned for invading Ukraine, it cannot ship either. These factors opened up space for Brazil, which tries to meet the demand of the EU,” Edson Cipriano, representative of the Brazilian delegation during the steel fair in Germany, told CNN.

Source: CNN Brasil

To read the full original article, please go to: https://www.cnnbrasil.com.br/business/exportacao-de-aco-brasileiro-cresce-mais-de-830-apos-guerra-na-ucrania-aponta-instituto/

Sharing is caring!