Brazilian steel exports to the EU soar 830% in five months because of the Ukraine war

BRASILIA, Brazilian steel industry sales have ballooned since the start of the war in Ukraine sparked by the Russian invasion of its territory, which began in February.

According to Steel Institute data, shipments of the metal raw material to the European Union increased by more than 830% in the first five months of this year, y-to-y, coinciding with the period of warfare in Eastern Europe.

More than 849,000 tons of steel were exported to European Union countries between January and May 2022. In 2021, in the same period, the volume was much lower: 91,000 tons.

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

Also, according to the study, the Brazilian steel market was responsible for supplying 15% of the European demand for steel 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 market.

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 delegates 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 said

Source: Nam News Network