Brazil is one of the
world's biggest exporters of steel, with products distributed in
more than 100 countries across the globe, but the current
economic scenario, which is less than encouraging, has led firms
in the metallurgy and pipes sector to prick up their ears, in
search of ways to overcome the momentary crisis.
According to data from the Brazilian Steel Institute
(IABr), Brazilian steel production registered a fall of 13.4% in
the month of August, reaching 2.52 million tonnes. Furthermore,
sales on the domestic market fell 7.2%, for a total of 1.61
million tonnes.
The crisis in the sector worsened at the beginning of the
year, after the European Union announced it was setting tariff
barriers on Brazilian steel products, within the framework of
the ongoing trade war between the United States and China. This
decision was a reaction to the tariffs on the international
import of steel announced by US President Donald Trump. To that
can be added the still slow recovery of the Brazilian economy
and the crisis undermining its neighbour Argentina.
"Chinese raw materials have always been a source of concern
for us," says in a conversation with ANSA David Campos,
commercial director of Remadi, a firm that specialises in
zinc-plated attachments and hydraulic metals, adding that
"malleable pig iron can be obtained from iron remains, but we
have brass, stainless steel and aluminium products which are
more sensitive to these raw material problems".
The most difficult scenarios, however, can yield
opportunities. According to Flávio Paiva, managing director of
IPC Brasile, which produces iron connections, this context of
uncertainty requires companies to adopt a "strategic and
academic approach".
"We do not believe in luck or chance. When there is no good
wave to surf on, knowledge becomes more important to got and
navigate directly on the market. Prices, logistics, the dollar,
inflation: all these factors are practically identical for all
competing firms, but the difference consists in the way in which
each stores knowledge, and the use they make of it. For us,
knowledge is everything", Paiva told ANSA.
In his opinion, trade tensions at a global level and the
exchange rate problems in Brazil are reasons to be concerned,
but there are also "signs of optimism, albeit with a certain
dose of caution", in relation to a possible improvement in the
economy.
"Knowledge is what allowed us to grow at higher rates than
out competitors. If we make a comparison, the sector registers a
contraction, and yet IPC Brasile is growing, so I would like to
recommend to all firms to invest in the most important thing,
knowledge," Paiva concluded.
Remadi, for example, has bet on a strategy of persuasion to
demonstrate the importance of investing in high quality products
in fire fighting, which is one of its focal points of action.
"Our products are competitive, but not cheap, because of the
technology. We must convince firms that they need good
maintenance of fire fighting equipment, because this will serve
to protect people. We must present it as a kind of investment to
save human lives", explained the manager, David Campos.
This knowhow and strategies of the firms in sector will be
part of what will be exhibited, October 1-3, during the Fair of
international pipes, valves, pumps, connections and components
(Tubotech), which will take place in Sao Paulo. The 10th edition
of the event, organized by the Brazilian Associazione of the
Industry of metallic pipes and accessories (Abitam) and Cipa
Fiera Milano, is seen by the segment as an opportunity to expand
the business and partnerships of the sector.
At the same time as Tubotech, there will also be the 4th
edition of Wire South America, the international fair of wires
and cables.
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