The president of the Brazilian Steel Institute (IBS) has said that China's rapidly rising steel production and the prospect of it becoming a net exporter are threatening Brazilian steel exporters.China, the world's biggest steel producer, accounted for about 31 percent of world crude steel output in 2005, against 2.8 percent by Brazil, the world's ninth largest producer.
Exports are key to Brazil, which shipped 43 percent of its steel output of 31.6 million tonnes in 2005 as domestic demand continued to stagnate.
Quoting a study by international consultants McKinsey, IBS President Luiz Andre Rico Vicente said that China's net steel deficit of 10 million tonnes in 2004 is seen turning into a 35 million-tonne surplus, mainly of steel products, in 2010.
