According to data from the Brazilian Steel Institute (IABr), between January and May 2026, the country's crude steel production fell by 1.9%, totaled at 13.4 million tons. Despite slight growth in sales and exports, the apparent steel consumption dropped by 4.1%, mainly due to a significant 17% reduction in imports.

The May figures showed a 2.4% monthly recovery in production and a 1.3% increase in domestic sales. However, apparent steel consumption suffered a 14.1% year-on-year decline, which is due to a sharp drop in imports (-55.4%) and exports (-35%) compared to the previous year.

The data reflects a market in adjustment, marked by a contraction in domestic demand and lower foreign trade volumes. This scenario underscores the challenges that Brazilian industry having in stabilizing its production pace in the face of a volatile environment.