BNamericas reported that Brazilian steelmaker Usiminas is projecting output of 5.8 million tonnes in 2009.
Mr Sérgio Leite VP of new business at Usiminas said that of the total, 4 million tonnes will head to the domestic market and the remainder will be exported and sales volume in Q4 is expected to reach 1.2 million tonnes.
He said that "We will not see much of a reaction in the heavy plates market in the coming six months. This market is at a very low level right now."
However, Mr Leite expects strong recovery in H2 of 2010 due to federal energy company Petrobras' pre salt drilling projects off the southeast coast, as the latter will be investing in equipment, ships and oil platforms.
In regards to new competition coming into the market, Mr Leite said that the entrance of new players is an incentive to become more competitive and add more value to our products. This is the long term strategy of Usiminas.
He mentioned that as of August 2010, Usiminas will be using accelerated cooling equipment geared towards heavy plates. He said that "This equipment and new technology will give us a great technological jump for the pre salt oil and gas projects."
(Sourced from www.bnamericas.com)
