Insight
Brazil's Usiminas closes two blast furnaces, lowering coal demand
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Report summary
Brazil’s Usiminas plans to idle hot metal production at two of its five operating blast furnaces due to poor market conditions. The company will close the No. 1 blast furnace at Cubatao and the No. 1 furnace at Ipatinga within the next few weeks, which is expected to reduce hot metal production by a total of 120,000 tonnes per month. Taking into account the use of petcoke for about 25% of their blends, we estimate this action will lower coal demand by 772,000 tpa.
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- Coal demand loss due to BF closures
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