b'Restrictive Measures Remove Impacts on Brazils EconomyAiding Brazils position in global steel has been the removalThe Brazilian economys gross domestic product grew a sur-of restrictive measures against Brazilian exports of cold-rolledprising 2.9% in 2022, defying some earlier predictions of much steel products (CRC) by the U.S. and the UK. The U.S. removedmoremeagergrowth,alevelthatmaybeequaledthisyear, anti-dumping and countervailing duties of up to 46% in on importsaccording to the countrys Economy Ministry. Inflation, which ran of CRC from Brazil, while keeping the measures on the samein the double digits for the first seven months of 2022, ended the products from other origins, including China, India, Japan, Southyear at 5.79%. The annual rate reported for core inflation came Korea, and the UK. The UK excluded Brazil from a 25% surchargein at just 2.5% annual growth during the last four months of the on steel sheets and CRC. The termination of those measures byyear and January 2023 showed a gain 5.77%. The data service the U.S. may have contributed to a spike in Brazilian imports ofStatistica projects 4.68% annual inflation this year, and some 711% in January, according to numbers supplied by the Americanobservers project that the Brazils central bank will soon begin to Iron and Steel Institute (AISI), part of an overall increase of 18% inlower interest rates. U.S. steel imports for the month.TheEconomyMinistryisoptimisticfor2023sprospects, In Europe, 2022 showed a 4.6% drop in demand for domesticsupported, it says, by greater private investment, capital goods steel product. This years outlook is for a 1.6% decrease, whileimports, and a healthy rate of jobs creation. External demand for 2024 is expected to usher in a modest recovery of 1.6%, accord- Brazils goods has held up better than it has for its peers, noted ing to numbers from the European Steel Association (EUROFER).one economic report, with goods export growth reaching 5.5% in Axel Eggert, EUROFERs director general, blames the situation onthe fourth quarter. massive cheap imports from third countries as well as inflation,Witheconomicuncertaintyagiven,optimismforBrazils supply-chain issues, decarbonization costs, and Russias war ineconomy in 2023 is running better than in some other corners Ukraine and its impact on inflation and global supply chains.of the globe. If projections hold up, and additional investments in It remains to be seen whether Brazil will be in a position toconstruction and infrastructure come through, its probable that supply Europe with increased volumes of steel in the longer run.Brazils steel sector will not be able to continue to supply markets Brazilssteelconsumptionshoulddoublewithinthenext10with products they are unable to buy from Russia and Ukraine to years, reported Bloomberg, with increased spending foreseen inthe same extent as it has over the last year.housing, renewable energy, ports, and oil-and-gas projects.Steel cutting process at a Brazil steel mill.Back to Contents THE UNCONTAINED 7'