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Usiminas Cubatão suspend work

The company Usiminas, Brazil, plans to suspend work at a metallurgical plant Cubatão. This is one of two plants within the company. On the decision was influenced by the publication of financial results Usiminas. They illuminate the work for IIIkvartal 2015. According to reports the Brazilian company showed a net loss of more than 270 million. USD. Over the last 15 years this is the worst result 3hmesyachny. The planned annual capacity of Cubatão 4,5 Mill. Tons of steel. The main goods produced metallurgical plant — cold rolled and hot rolled coils. Also Cubatão annually can produce about 1 mln. Tons of steel plate.

Metallurgical industry is not the first time stop watches workflows. In May, the blast furnace operation was stopped. As a result, the annual equivalent of the volume of pig iron decreased by 1.44 thous. Tons. Representatives of the company considering the reasons for this situation. Affected by changes in the situation on the steel market. Brazilian steel sector is already the 4th year of the observed decline in steel consumption. Institute of Steel Aco Brasil has provided data on the consumption of steel products. In September 2015 the volume of apparent consumption decreased by 24% compared to September, 2014. For 9mesyachny period the reduction was 14%. The main market for Usiminas is the automotive sector, where the company is a leading supplier. According to the results for January-September production of cars fell by 23.2% compared to the same period last year. In September production fell by 42.1%. At the same time the domestic market receives about 80% Usiminas products. Because the company is not possible to compensate for the recession by increasing external sales.

The lack of foreign assets is not the only problem of the Brazilian company. Experts believe that another source of problems — currency debt. And its volume is high enough. During the year the national currency fell by more than 55% relative to the USD. In IIkvartale ratio of net debt: EBITDA amounted to 3.8%. In IIIkvartale increased to 6.8%.

The production annual capacity of smelters company reaches 9.5 mln. Tons. At the same time in 2014. The volume of steel production reached 6.05 million. Tons. This figure is lower than the result in 2013 by 11.7%. In IIIkvartale smelting reached 1.17 million. Tons. This is 16% lower than in the past year.

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