en.Wedoany.com Reported - According to data from the Brazilian Steel Institute, Brazil's crude steel output reached 2.8 million tons in June 2025, up 2.5% month-on-month. However, the Steel Industry Confidence Index (ICIA) closed at 45.6 points in July, falling below the 50-point threshold for the second consecutive month, which is used to distinguish between industry CEOs' optimistic and pessimistic outlooks.
Other indicators generally rebounded during the month. Imports totaled 476,000 tons, surging 52.4% month-on-month; exports reached 912,000 tons, up 41.3% month-on-month; apparent consumption, reflecting actual domestic demand, stood at 2.2 million tons, rising 4.3% month-on-month. The only indicator to decline was domestic sales, which fell 1.5% month-on-month to 1.8 million tons. This contrast helps explain why imported steel volumes exceeded domestic sales.
From a semi-annual perspective, trends differ. From January to June, crude steel output fell 1.5% year-on-year (compared to the same period in 2025) to 16.3 million tons; imports dropped 17.6% to 2.9 million tons; domestic sales edged down 0.2% to 10.5 million tons; exports bucked the trend with a 3.1% increase, totaling 5.3 million tons. Domestic apparent consumption accumulated a decline of 5.3% to 12.9 million tons, becoming the largest drop among the semi-annual indicators.
June data provides a short-term snapshot, while semi-annual data reflects trend directions. The trend indicates a weakening domestic market: a 5.3% decline in six-month apparent consumption means that Brazil's industrial sectors (construction, auto parts, machinery) purchased less steel than last year. The month-on-month rebound in June is insufficient to reverse the cumulative downturn. The confidence index remaining below 50 points for two consecutive months suggests that most industry executives believe the future outlook will be more challenging than the current situation. As a leading indicator, negative expectations often translate into reduced investment and hiring contractions in the coming months.
