According to Mr Marco Polo Mello Lopes executive VP of Brazilian steel institute IBS, Brazilian steel industry is ready to supply the country's strong demand for consumer goods for years to come.

Mr Mello said that “There is no need to worry about a possible shortage of steel in the market despite consumption growth and rising raw material prices. The steel industry in Brazil is working with a capacity 60% above the current demand.”

Mr Lopes during a press conference said that apparent consumption for steel manufactured goods in Brazil will be 13.7% higher in 2008 compared to 2007. At the end of last year, IBS was forecasting just a 10% increase. Meanwhile Mr Lopes said the industry in Brazil is expecting production growth of 11.4% in 2008 with semi finished products accounting for 55.3% of the total.

IBS's long range steel consumption projection for 2015 is 39.8 million tonne per year or 213kg per capita versus 22 million tonne and 129 kg per capita in 2007. The figures represent significant growth by Brazilian standards but are still low compared to countries such as South Korea which consumes 1,051 kg per capita, Spain at 696 kg per capita and the United States at 424 kg per capita.

The most important consumption drivers pulling the economy in 2008 and in years to come will be the civil construction, automobile and capital goods sectors, Lopes said. In 2007, construction accounted for 30.0% of total steel consumption, the automotive sector 26.8% and the capital goods market 20.8%.

Mr Lopes said that "We have an optimistic message and are happy to say that we are in a period of sustained growth. After 26 years of unaltered steel consumption we are now ready for this challenge."