Usiminas, Brazil: Steel sales in the first quarter of 2025 increased by 5% year-on-year, showing a recovery in market demand.

​Brazilian steel giant Usiminas achieved strong growth in the third quarter of 2024, and market demand rebounded ​

Usiminas, Brazil's leading steel producer, reported in its third quarter report that steel sales reached 1.13 million tons, up 10% year-on-year and 8% month-on-month. Among them, domestic sales were 1.07 million tons, up 15% year-on-year and 10% month-on-month, showing a significant recovery in domestic market demand in Brazil. ​

The company achieved a net profit of 185 million reais (about 33 million US dollars) in the quarter, reversing the loss in the previous quarter and far exceeding the market expectation of 11 million reais. Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) reached 426 million reais, up 72% from the previous quarter, and the EBITDA margin increased to 6%. ​

Usiminas' crude steel production was 873,000 tons, up 7% from the previous quarter. The Ipatinga plant reached its highest production level since 2020 after a complete overhaul of Blast Furnace No. 3 in 2023. ​

Although exports fell to 56,000 tons, down 37% year-on-year and 17% month-on-month, the strong performance of the domestic market compensated for this impact. ​

Usiminas expects domestic steel sales to continue to grow in the first quarter of 2025, benefiting from product structure optimization and continued cost control measures. The company also expects Brazil's GDP to grow by 2.5% in 2025, mainly driven by key industries such as home appliances, automobiles and daily necessities. ​

However, the company also faces unfair competitive pressure from subsidized steel imports from countries such as China. Usiminas CEO Marcelo Chara stressed that trade protection measures are needed to address these challenges and protect local industries. ​

Usiminas' strong performance and positive outlook show that the company has successfully achieved growth by improving operational efficiency and focusing on the domestic market despite uncertainties and competitive pressures in the global market.