Royalty-free stock photograph created by Peter Herrmann and Unsplash.
RAW MATERIALS AND STEEL INDUSTRY
The Brazilian steel industry has registered a contraction in its crude steel production in the first five months of 2026, accompanied by a drastic drop in imports. This adjustment in the domestic market contrasts with a notable increase in exports, although a sharp decline in the confidence of industry executives casts uncertainty over the coming months.
The production of crude steel in Brasil, one of the main players in the global market, has experienced a contraction of 1,9 % between January and May 2026 compared to the same period of the previous year, totaling 13,4 million tons. According to data published by the Instituto Aço BrasilThis decline in production occurs in a context of significant readjustment of its trade flows and a notable drop in domestic demand.
During the first five months of the year, sales in the Brazilian domestic market showed marginal growth of 0,9%, reaching 8,7 million tons. However, apparent steel consumption in the country decreased. 4,1 %Production reached 10,8 million tons, a figure directly influenced by the collapse in imports. Purchases from abroad, a critical factor for the competitiveness of the local sector, fell by 17%, settling at 2,4 million tons.
Trade readjustment and pressure in international markets
In contrast to the internal weakness, Brazilian steel exports have registered a solid increase of 7,8 % in the year to date, reaching 4,4 million tons. This reorientation towards foreign markets by Brazilian producers increases competitive pressure on other exporting powers, including Spanish and other companies. EuropaThe increased volume of Brazilian steel on the international market, often at very competitive prices, could affect the margins and market share of Spanish producers in key destinations. América Latina and other regions.
A specific analysis of May reveals greater volatility. Monthly production grew 2,4% year-on-year to 2,8 million tons, and domestic sales advanced 1,3%. However, May's trade figures were drastically negative: exports plummeted 35% (645 tons) and imports collapsed. 55,4 % (312 thousand tons) compared to May 2025.
Uncertainty on the horizon
The most worrying data point for the industry is the deterioration in expectations. The Steel Industry Confidence Indicator (ICIAThe index stood at 47,8 points in June, registering a drop of 12,1 points compared to the previous month. Falling back below the 50-point threshold, which separates confidence from distrust, the indicator reflects growing pessimism among top executives in the sector, reaching its lowest level so far in 2026. This signal suggests that, despite strong exports, the industry anticipates a complex operating environment in the short and medium term.
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