SUSTAINABILITY

REPORT

2020

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01

INTRODUCTION

  • About the Report
  • Message from the President
02

2020 - THE YEAR IN WHICH THE WORLD STOOD STILL

03

3 PILLARS OF SUSTAINABLE DEVELOPMENT ECONOMIC

ECONOMIC

SOCIAL

ENVIRONMENTAL

  • Steel and the Circular Economy
  • Environmental Performance
  • Climate Change
04

INFORMATION ON THE BRAZILIAN STEELMAKING SECTOR

  • Industrial Park and Plant Location
  • Products and Markets
  • Performance of Sector Companies
  • Foreign Trade
  • Steel Production Process
05

BRAZIL STEEL INSTITUTE

  • About the Institute
  • Corporate Information
 

ABOUT THE REPORT

MESSAGE FROM THE PRESIDENT

01

INTRODUCTION

ABOUT THE REPORT

After two previous biennial publications, the 12th edition of the Brazil Steel Institute’s Sustainability Report will cover 2018, 2019, and 2020 – a reflection of the Covid-19 pandemic, an unprecedented period and without a doubt one of the most critical in recent human history. Even in the midst of a scenario that is difficult and ongoing, we strive to maintain our commitment to editing and publishing data with reference to sustainable action in the Brazilian steel industry.

Here we bring together data on the sector’s performance, as well as impactful events from this period and the manner in which they were mitigated. The information was gathered by Brazil Steel Institute’s team, relying on collaboration from technicians and specialists from a wide range of departments at associated companies.

This report will present the sector’s sustainable development initiatives, as well as what we still need to work on moving forward. Whether reducing waste through means of recycling projects or taking measures that contribute to reducing the impacts of climate change and demand for natural resources, each project enhances our performance and commitment to sustainability in steel production.

MESSAGE FROM THE PRESIDENT

Major challenges emerging in a world of transformation

The Covid-19 pandemic arrived at the start of 2020 at a moment in which economic indicators suggested that we were leaving the crisis experienced in recent years behind and that forecasts for demand for steel in Brazil were very positive. This uncertain and challenging scenario uprooted our expectations, imposing upon us a reality that had been unheard of in the last one hundred years: a pandemic capable of paralyzing the economy and changing, even if temporarily, the way in which we connect in both our professional and personal lives.

We, the Brazilian steel industry, placed the priority on the wellbeing of our employees, communities, and clients. This is reflected in the excellent worked carried out along various networks, in a collaborative manner, by our associates throughout Brazil, which resulted in the construction of hospitals, whether field hospitals or permanent facilities, the donation of numerous varieties of health equipment, face masks, hygienic materials, among other types of PPEs. In the manner, we were able to make ourselves part of the solution to the problems faced by society.

We once again drew upon the enormous capacity of the Brazilian steel industry to face seemingly impossible situations head on. Our industry committed itself, from the first sign of instability, to continuity in steel production, an activity considered to be essential, adopting rigorous safety protocols and thereby guaranteeing total supply for consumer markets. I wish to emphasize the fact that steel is an indispensable value chain input that cannot cease to exist, like hospitals, components of the healthcare sector, security and agriculture, among others.

Readily, and with maturity and responsibility, the sector took the necessary safety measures for its employees, suppliers, and thereby the entire production chain. The sector opted for remote work wherever possible in all operational areas, strict protocols for prevention, and monitoring employee health to make the journey safer during such uncertain times.

In addition to looking out for the health of others and developing a series of social actions, the pandemic was also a period in which our environmental agenda evolved even further, with advances made in reusing waste and water in production processes and the commercialization of co-products. Additionally, despite the Brazilian steel industry already having practices in place making it a reference worldwide for technology and reducing carbon emissions, sustainability is increasingly becoming our top priority and we remain attentive and work towards seeking out and developing the best and most reliable solutions that will allow the sector to accelerate its decarbonization process and continue aligning itself with the agendas at the center of discussion in society today. It is important to highlight that steel is an essential product for individuals and society as we work towards a Circular Economy, mitigating the possible impacts of production routes.

Quotes

(...) we are seeking out transformative solutions capable of overcoming such obstacles and placing the sector back on the path to growth.

Marcos Faraco

Chairman of Brazil Steel Institute’s Board of Directors and Vice-President of Gerdau Steel Brazil Argentina, and Uruguay

 
 

Going back a bit further in time, 2018 and 2019 were already years of crisis for a large part of the country’s economic sectors. For the steel industry, in addition to other factors such as the trucker’s strike, one of the main culprits was an increased escalation of the longstanding polarization between the United States and China, which was accompanied by protectionist policies and geopolitical tension.

Recovery during this two-year period, however, occurred at a slower pace than was expected – and needed –, creating obstacles for full expansion of the steel industry. Guided by the principles of research, technology, innovation, and social responsibility, we are seeking out transformative solutions that are capable of overcoming such obstacles and placing the sector back on the path to growth.

No one was prepared for the events of 2020; we needed to work quickly to reinvent ourselves and invest increasingly more in innovation and research and development. The steel sector has been taking greater steps towards offering innovative products and solutions that are in line with market trends and the needs of consumer sectors. We have also made advances in the digitalization of our industrial parks, through initiatives for artificial intelligence, for example, allowing our production processes to become state-ofthe- art in terms of high-quality steel production. And we are still learning with each new day. At a time such as that which we are currently facing, it has become evident that each one of us must do their part to overcome not only the pandemic and its social and economic effects, but also to expand our outlook on sustainability and quality of life. We possess the determination needed to bring our sector – one of the most economically important both in Brazil and worldwide – back on a path towards full development.

We are learning from the past; once again, we have made unity and bringing people together our biggest asset. However, we are also looking towards the future, gleaning lessons from previous challenges and opportunities. And, speaking of the future, we trust that 2021 and 2022 will bring health to all and the return of growth, as well as increased steel production, to the Brazilian economy.

 

2020 - THE YEAR IN WHICH THE WORLD STOOD STILL

02

2020

THE YEAR IN WHICH
WORLD STOOD STILL

2020 - THE YEAR IN WHICH THE WORLD STOOD STILL

It is not merely a matter of expression. Covid-19 forced the global economy to step on the brakes. 2020 was very challenging for everyone, and the Brazilian steel industry was no different. We started 2020 with the expectation that these would finally be the year in which economic activity in our nation recovered. But the world was brought to a halt by the COVID-19 pandemic already in the first quarter.

Social distancing and uncertainty about the future drastically reduced demand for products and services, resulting in a drop in production in many different sectors and increasing unemployment around the world. The IMF calculated that the retraction in the economy in 2020 in comparison to 2019 was 4.4% and the GDP fell 4.1%, the lowest index in 24 years.

The blow to steel’s main consumer sectors - automotive, machinery and equipment, and civil construction - forced the steel industry to adjust its production in line with the reduction in demand. By April of 2020, the sector was operating at only 45% of its total installed capacity. The majority of blast furnaces and other equipment had to be reduced or shut off.

By mid-May 2020, with the measures announced by the government and orders from clients returning, the sector was able to restart machines and reinitiate production. Already by June, the sector began placing more products into the domestic market than had been commercialized in January and February, before the COVID-19 pandemic. This was a welcome relief during such trying times.

We maintained our rhythm, growing incrementally and with a complete focus on meeting the demands of the domestic market.

However, there are reasons to look optimistically at the Brazilian steel industry in 2021.

Despite the demand crisis faced by the sector in 2020, the steel production companies associated with the Brazil Steel Institute provided the communities in which they operate with humanitarian aid and a sense of solidarity. More than R$70 million was put towards preserving the health and lives of others. These actions contributed to construction and improvements to the infrastructure of hospitals and laboratories, donation of oxygen, reappropriation/purchase of respirators and/or ventilators and PPEs, food, hospital supplies, hygiene kits, among other items.

 

Video from Brazil’s Jornal Nacional evening news program’s Solidariedade S/A segment showing some of the actions taken.

Play

Program aired on 04/27/2020.

There are reasons to look optimistically at the Brazilian steel industry in 2021.

 

ECONOMIC

Social

Environmental

03

3 PILLARS

OF sustainable DEVELOPMENT

 

Social

Environmental

03

THE ECONOMIC
Scenario

THE ECONOMIC SCENARIO – 2018 TO 2020

The three-year period between 2018 and 2020 was characterized by significant limits to economic growth which seriously affected the lives of Brazilians.

In May of 2018 there was a trucker’s strike that left Brazil practically paralyzed and negatively affected the flow of raw materials, supplies, and final products along production chains.

In January of 2019, the dam collapse in Brumadinho, in the Brazilian state of Minas Gerais was a tragic episode that put mining activity in the public eye. Brazil’s National Mining Agency came to require a Stability Condition Statement as a result of the accident and many mines and dams/reservoirs had their operations interrupted or reduced until they were able to meet the new requirements, which created uncertainty with regards to iron ore supply.

In 2020, the COVID-19 pandemic arrived in Brazil. Social distancing measures, essential to reducing the spread of the disease, resulted, in March and April of 2020, in a marked decrease in demand for products and services, as well as the temporary suspension of activities in production facilities.

The events of 2018 and 2019 brought temporary disequilibrium and a reduction in performance to the Brazilian economy. Macroeconomic indicators did not present a significant deterioration since the economy grew by 1.8% and 1.4% according to the National Transport Confederation (CNT) and The Brazilian Institute of Geography and Statistics (IBGE), respectively. However, the effects of the COVID-19 pandemic were more intense and occurred throughout practically all economic sectors

The negative impacts of the pandemic on economic activity caused Brazil’s GDP to retract by 2.2% and 9.2% in the first and second quarters of 2020, respectively, when compared to previous respective quarters. However, recovery in the economy also took place more quickly than forecast. This movement resulted in a 7.8% increase in Brazil’s GDP in the third quarter and a 3.2% increase in the fourth quarter in 2020, when compared to previous respective quarters.

The combination of a significant decrease in economic activity in the first half of 2020, with a restart coming only in the second half of the year, resulted in a retraction of 4.1% in Brazil's GDP in 2020 when compared to that registered the year before.

The scenario of a recovery in the economy was a global phenomenon resulting in increases in international commodity prices, which put pressure on production costs. In the case of Brazil, wholesale inflation, measured by the Producer Price Index - Internal Availability (IPA-DI) released by the Getúlio Vargas Foundation (FGV), was 31.7% on the year. Part of the pressure on costs was absorbed by the production sector due to the inherent difficulty of passing prices on to the consumer, leaving the average inflation measured by The Extended National Consumer Price Index (IPCA, published by IBGE) at 4.5%.

However, the Brazilian economy, during the final year of the 2018 - 2020 period, backtracked on the gains it had made in the previous two years, with a loss in production and an increase in unemployment and inflation in a scenario marked by a deterioration in the country’s fiscal situation.

The Brazilian industry needs to operate with a competitive isonomy in relation to its competitors in the domestic and overseas markets (with imports) and interrupt the trend towards a reduction in its participation in Brazil’s GDP. Reducing what is known as ‘Brazil cost’ is a crucial factor in sustained economic development.

The steel industry – 2018 - 2020

The steel industry showed resilience during the 2018 - 2020 period. The sector was faced with many challenges, such as difficulties in receiving raw materials and bottlenecks in the flow of its final products in 2018 and 2019, as well as an increase in the prices of raw materials and inputs in a scenario of disequilibrium between demand and market supply in 2020.

In May of 2018, the trucker’s strike in Brazil brought instantaneous impacts to the flow of raw materials and final products throughout the entire production chain. In the case of the steel industry, the negative impacts were apparent in indicators for May, which showed a 9.0% decrease in crude steel production in comparison to the month before. This drop was almost entirely reversed in June. Issues in the flow of final products was felt with greater intensity in the steel producing sector’s domestic sales. This indicator saw a decrease of 23.1% in May in relation to April with a quick recovery in June (+53.3% when compared to May).

Even with the problems caused by the trucker’s strike, crude steel production grew by 1.8% in 2018, reaching 35.4 million tons. Domestic sales increased by 9.7% to 18.9 million tons. The apparent consumption of steel products saw advances of 8.6% in the same year, reaching 21.2 million tons. Exports decreased by 9.2% (13.9 million tons) and imports increased by 3.3% (2.4 million tons) during the same period.

At the beginning of 2019 (the 25th of January), there was a dam collapse in Brumadinho, Minas Gerais, which was subsequently followed by a suspension of activities in all of Vale’s mines. This situation led to difficulties in supplying steelworks with iron ore. By February of 2019, there had already been a 9.1% drop in crude steel production in comparison to the previous month. Despite a rebound in the months of March (+4.8%) and April (+3.2%), using the same comparison base, this movement was not sustained, resulting in an 8.0% drop in production in 2019, at a total of 32.6 million tons.

Domestic sales were less impacted since the flow of steel products was able to be maintained at normal levels. This indicator grew by 5.3% in February and 9.6% in March of 2019. However, with the subsequent economic slowdown occurring, domestic sales closed out the year with a drop of 0.6% (down to 18.8 million tons), while apparent consumption fell 1.1% (to 21.0 million tons). Exports continued to decrease at a pace similar to that of 2018, dropping 8.2% to 12.8 million tons. Imports decreased by 1.7% to 2.4 million tons during the same period.

In 2020, soon after the first signs of the Covid-19 spreading throughout Brazil in March and April, orders from steel consumer sectors began to be canceled and dropped sharply. Domestic sales decreased 34.4% in April relative to the previous month. The priority for companies across all sectors during this period was to protect their bottom line and, as a result, they did not make any orders and relied on their own inventories. The reduction in economic activity was such that steel industry needed to turn off eight of its 31 blast furnaces and shut down 13 of its 35 steel mills. Production fell by 29.1% in April when compared to the previous month.

However, an unexpected “V-shaped” economic recovery caused the steel industry’s domestic sales to heat up. These sales, by June, had already surpassed the volumes registered before the pandemic, in February of 2020. This indicator maintained steady growth and more than recovered from the decline in April, registering an expansion of 3.5% in 2020 (19.5 million). During this period of economic recovery, the steel industry restarted blast furnaces and activities at steelworks that had been temporarily shut down during the first few months of the pandemic.

Since the COVID-19 outbreak began in Brazil, Brazilian steel production companies have placed a priority on supplying domestic markets to the detriment of exports. Exports therefore saw a decrease of 17.7%, down to 10.5 million tons. The 2.3% increase in apparent consumption in 2020 (up to 21.4 million tons) was therefore the result of a 3.5% expansion in domestic sales (reaching 19.5 million tons) due to imports dropping by 13.9% during the same period, down to 2.0 million tons.

The backdrop of different crises between 2018 and 2020 had a distinct impact on the various activities of the steel industry. Production dropped in both 2019 and 2020, returning to levels registered in 2016, a year of economic recession. Domestic sales grew in 2018 and 2020, reaching the highest level seen since 2014. Apparent consumption also reached the highest level seen since 2014. In international trade, exports dropped throughout the entire three-year period, reaching the lowest level seen since 2014. Imports decreased in 2019 and 2020, reaching the lowest levels seen since 2016.

The steel industry - 2005/2020

Unit of Measurement: million
Source: Brazil Steel Institute/Ministry of Economy
 

Economic

Environmental

03

The Social
scenario

SOCIAL PERFORMANCE

The Brazilian steel production industry’s primary concern during the pandemic was the health of its collaborators. As an activity considered essential, the sector quickly adopted rigorous health protocols to protect its workers and make them aware of the importance of extending these precautions throughout their personal and household routines.

Collaborators working in administrative positions immediately began working remotely from home. Individuals with comorbidities or more vulnerable to complications, such as pregnant women and collaborators of more than 60 years of age, were removed from in-person work. This work model was extended throughout all of 2020. The use of protocols preventing contagion, measures to create awareness, and precautions were also implemented, particularly for employees completing in-person work.

Within the scope of the ESG (Environmental, Social and Governance) concept, which has increasingly guided conduct in our sector, the companies associated with Brazil Steel Institute also made investments in social practices that benefit all of society and, in particular, surrounding communities. Together, they put more than R$ 70 million towards social initiatives in the first few months of the pandemic.

These initiatives included the construction and improvements to the infrastructure of hospitals and laboratories, donation of oxygen, reappropriation/purchase of respirators and/or ventilators and PPEs, food, hospital supplies, hygiene kits, among other items.

GERDAU IS USING STEEL AND TECHNOLOGY TO HELP SAVE LIVES DURING THE PANDEMIC

Ahead of the Covid-19 crisis, Gerdau quickly mobilized itself not only through acts of solidarity but also by implementing modular construction capable of delivering structures for medical attention in record time. The initiative resulted in the construction of three Covid-19 treatment centers in São Paulo and Porto Alegre.

 
 

GERDAU IS USING STEEL AND TECHNOLOGY TO HELP SAVE LIVES DURING THE PANDEMIC

Well aware of the situation imposed by the Covid-19 pandemic and ready to contribute to minimizing the effects of the ensuing economic and social crisis, Gerdau acted quickly not only with regards to movements of solidarity, but also by taking direct action to avoid a collapse of the Brazil’s hospital sector. Through means of its partnerships, and using steel produced in its branches across Brazil, the company implemented an innovative modular construction technique capable of delivering structures for the provision of medical services in record time, thereby increasing the capacity for saving lives.

Gerdau focused its efforts and investments on collaborating with emergency assistance initiatives by donating PPEs and hospital equipment, in addition to more robust and challenging projects. Included among these projects was Gerdau’s decisive participation in the construction of three Covid-19 treatment centers. These new facilities resulted in the addition of 200 hospital beds to the municipal hospitals in M’Boi Mirim and Vila Santa Catarina, in São Paulo, and to Hospital Independência, in Porto Alegre.

Gerdau responded quickly with movements of solidarity and direct action to avoid a collapse in Brazil’s hospital sector.

Company workforce and subcontractors

In 2018, the Brazilian steel production industry closed out the year with 67,349 collaborators in its company workforce. In 2019, a loss of labor occurred, and production companies finished the year with 66,572 employees. In 2020, as the pandemic crisis worsened, there was another reduction in personnel, this time resulting in a loss of 2003 positions, down to a total of 64,569 employees.

With regards to subcontractors, there was an increase of 4597 positions between 2018 and 2019, but a loss of 6911 workers in 2020 (-15%), down to a total of 38,739 employees. The majority of subcontractors working with associated companies are concentrated in the production area (59% in 2020).

During the pandemic, the companies associated with Brazil Steel Institute acted with agility and were thorough with measures they took, making the continuity of operations feasible without putting the health of collaborators at risk.

In addition to measures recommended by the World Health Organization (WHO), such as the distribution of masks and hand sanitizer and measuring individuals’ body temperature upon entering buildings, the associated companies reinforced communication with their employees in order to ensure that they were aware of the importance of prevention, including among their families.

The installations were fully adapted in order to receive collaborators whose functions could not be performed at home. Measures such as increasing the number of dining times in the cafeteria in order to avoid conglomerations, the installation of physical barriers at tables, indication of social distancing measures at workstations, in bathrooms and common areas were essential to avoiding infection in production plants.

The companies also carried out Covid-19 testing en masse. Several operations were able to test 100% of the surrounding population. Medical and psychological support was made available to individuals that presented symptoms and needed to be given a leave absence from work.

Company workforce

2018 67.349
2019 66.572
2020 64.569
Source: Brazil Steel Institute
Note: Includes the entire Brazilian steel industrial park.

Number of subcontractors

2018 41.053
2019 45.650
2020 38.739
Source: Brazil Steel Institute.
Note: Includes the entire Brazilian steel industrial park.

Subcontractors by area (%)

Production and maintenance Production support Expansion
2018 59% 33% 8%
2019 59% 32% 9%
2020 58% 32% 10%
Source: Brazil Steel Institute.
Note: Includes the entire Brazilian steel industrial park.

Company workforce by gender, ethnicity, age range, and education level

Gender

The participation of female employees in associated companies has been steadily growing, reaching 9% in the two-year period between 2018 and 2019, a one-percent increase in relation to the previous two-year period. This growth was repeated in 2020, with women coming to represent 10% of the workforce.

  Men Women
2018 91% 9%
2019 91% 9%
2020 90% 10%
Source: Brazil Steel Institute.
Note: Taking data from 11 associated business groups responsible for 98% of total national steel production in 2018 into consideration. Taking data from 10 associated business groups responsible for 89% of total national steel production in 2019 into consideration. Taking data from 10 associated business groups responsible for 85% of total national steel production in 2020 into consideration.

Ethnicity and racial identity

In recent years, the participation of Black collaborators in the workforce has been increasing: from 44.9% in 2018 to 49.2% in 2020.

Caucasians Black and mixed ethnicity Asian Indigenous Not Declared
2018 44,3% 44,9% 2,5% 0,2% 8,1%
2019 41,9% 45,3% 2,5% 0,2% 10,1%
2020 39,3% 49,2% 1,4% 0,2% 9,8%
Source: Brazil Steel Institute.
Note: Taking data from 11 associated business groups responsible for 98% of total national steel production in 2018 into consideration. Taking data from 10 associated business groups responsible for 89% of total national steel production in 2019 into consideration. Taking data from 10 associated business groups responsible for 85% of total national steel production in 2020 into consideration.

Age group

From 2018 to 2020, the majority of the company workforce continued to be between 31 and 40 years of age, as seen in previous years. In 2019 and 2020, the number of employees aged 41 to 50 surpassed that of employees aged 21 to 30. Collaborators up to 20 years of age continued to represent 2% of associated companies’ total workforce.

Up to 20 years of age Up to 20 years of age 31 to 40 years of age 41 to 50 years of age Over 50 years of age
2018 1.604 16.479 26.185 14.661 7.827
2019 1.275 11.789 20.971 12.528 5.685
2020 949 11.434 20.670 13.255 5.351
Up to 20 years of age Up to 20 years of age 31 to 40 years of age 41 to 50 years of age Over 50 years of age
2018 2% 25% 39% 22% 12%
2019 2% 23% 40% 24% 11%
2020 2% 22% 40% 26% 10%
Source: Brazil Steel Institute.
Note: Taking data from 11 associated business groups responsible for 98% of total national steel production in 2018 into consideration. Taking data from 10 associated business groups responsible for 89% of total national steel production in 2019 into consideration. Taking data from 10 associated business groups responsible for 85% of total national steel production in 2020 into consideration.

Education Level

Collaborators who have completed high school form the large majority of associated companies’ workforces. This is followed by employees with a post-secondary education.

Did Not Complete Primary School High School Post-Secondary Graduate Studies
2018 680 4.464 47.329 11.035 3.248
2019 5 3.496 36.054 9.567 3.126
2020 137 3.439 35.243 9.853 2.987
Source: Brazil Steel Institute.
Note: Taking data from 11 associated business groups responsible for 98% of total national steel production in 2018 into consideration. Taking data from 10 associated business groups responsible for 89% of total national steel production in 2019 into consideration. Taking data from 10 associated business groups responsible for 85% of total national steel production in 2020 into consideration.

Persons with Disabilities

Employees with disabilities % of total workforce
2018 1.916 2,8%
2019 1.906 2,9%
2020 1.657 2,6%
Source: Brazil Steel Institute.
Note: Taking data from 11 associated business groups responsible for 98% of total national steel production in 2018 into consideration. Taking data from 10 associated business groups responsible for 89% of total national steel production in 2019 into consideration. Taking data from 10 associated business groups in 2020 into consideration.

ARCELORMITTAL BRASIL PROMOTES RESPECT AND INCLUSION

ArcelorMital Brasil’s Diversity and Inclusion Program was created in order to establish a culture of respect and valuing of individuality in the workplace. With 1300 collaborators participating in a voluntary capacity, the work of the D&I Program is directed towards 4 main aspects of the workforce: Persons with Disabilities, Gender Equality, Racial Diversity, and LGBTI+.

 
 

ARCELORMITTAL BRASIL PROMOTES RESPECT AND INCLUSION IN THE WORKPLACE ENVIRONMENT

Striving for a workplace that provides a culture of respect and values collaborators’ individuality, ArcelorMittal Brasil launched its Diversity & Inclusion Program in 2019. The program focuses on four distinct and equally important aspects: Persons with Disabilities, Gender Equality, Racial Diversity, and LGBTI+.

ArcelorMittal Brasil promove respeito e inclusão no ambiente de trabalho

The Diversity & Inclusion Program carries out communications and campaigns in relation to this theme.

The Diversity & Inclusion Program carries out communications and campaigns in relation to this theme.

Time at Company

Up to 1 year 2 to 5 years 6 to 10 years 6 to 10 years 21 to 30 years More than 30 years
2018 16,8% 25,4% 23,9% 20,2% 8,6% 5,1%
2019 15,7% 23,1% 23,6% 24,7% 8,6% 4,2%
2020 14,6% 23,7% 23,3% 25,4% 8,4% 4,5%

Average Time Spent Working at Company

Source: Brazil Steel Institute.
Note: Taking data from 11 associated business groups responsible for 98% of total national steel production in 2018 into consideration. Taking data from 10 associated business groups responsible for 89% of total national steel production in 2019 into consideration. Taking data from 10 associated business groups responsible for 85% of total national steel production in 2020 into consideration.

Working Hours

In 2019 and 2020, 49% of employees were working under the administrative schedule, while 51% were performing their functions under a shift schedule. During the pandemic, there was a special scheme for working hours. Shifts were extended in order to provide more time between changing of shifts, thereby preventing overlapping and agglomerations of workers.

Administrative Shift
2018 51% 49%
2019 49% 51%
2020 49% 51%
Source: Brazil Steel Institute
Note: Taking data from 11 associated business groups responsible for 98% of total national steel production in 2018 into consideration. Taking data from 10 associated business groups responsible for 89% of total national steel production in 2019 into consideration. Taking data from 10 associated business groups responsible for 85% of total national steel production in 2020 into consideration

Entrance of new employees, dismissals, and turnover

Despite the series of crises that the sector has faced in the last three years, the rate of new hires experienced a slight decrease in relation to dismissals in the period between 2018 and 2020. Last year, there were 5868 dismissals against 5041 new hires. The turnover rate remained stable at 11%.

New Hires Dismissals
2018 7.313 7.500
2019 5.487 5.861
2020 5.041 5.868
Source: Brazil Steel Institute
Note: Taking data from 11 associated business groups responsible for 98% of total national steel production in 2018 into consideration. Taking data from 10 associated business groups responsible for 89% of total national steel production in 2019 into consideration. Taking data from 10 associated business groups responsible for 85% of total national steel production in 2020 into consideration

Turnover Rate

% of total workforce 2018 2019 2020
Turnover (entire sector) 11,0% 11,0% 10,6%
Source: Brazil Steel Institute.
Note: Taking data from 11 associated business groups responsible for 98% of total national steel production in 2018 into consideration. Taking data from 10 associated business groups responsible for 89% of total national steel production in 2019 into consideration. Taking data from 10 associated business groups responsible for 85% of total national steel production in 2020 into consideration.

Worker Health and Safety

The companies associated with Brazil Institute have been optimizing their safety measures in line with the evolution of production processes. As a result, there have been successive reductions in workplace accidents. With lower rates than those of the previous two years, 681 accidents were registered in associated companies’ workforces in 2018, as well as 470 with subcontractors. In 2019, these numbers dropped to 417 and 457, respectively. In 2020, 285 accidents occurred with associated companies’ workforces and 215 with subcontractors.

It was suggested by various specialists that the pandemic may have led people to act more cautiously in the workplace environment More rigorous health and safety protocols were also in place due to the pandemic, a factor which naturally contributed towards a reduction in the rate of accidents.

There were also adaptations made with regards to transport in order to avoid an increased risk of Covid-19 infection. In addition to providing incentives for the use of alternative transport such as bicycles, companies also contracted more charter services to ensure that there were less passengers using each private vehicle.

Total accidents

Company workforce Subcontractors
2018 681 470
2019 417 457
2020 285 215
Source: Brazil Steel Institute.
Note: Taking data from 11 associated business groups responsible for 98% of total national steel production in 2018 into consideration. Taking data from 10 associated business groups responsible for 89% of total national steel production in 2019 into consideration. Taking data from 10 associated business groups responsible for 85% of total national steel production in 2020 into consideration.

Accident frequency

Lost time accidents (Entire workforce = Company + Subcontractors) - including fatal accidents Lost time accidents (Company workforce) - including fatal accidents Lost time accidents (Subcontractors) - including fatal accidents Global Average (Source: worldsteel)
2018 1,31 1,32 1,34 0,84
2019 0,97 1,14 1,28 0,83
2020 0,63 0,76 0,83 -
Source: Brazil Steel Institute.
Note: Taking data from 11 associated business groups responsible for 98% of total national steel production in 2018 into consideration. Taking data from 10 associated business groups responsible for 89% of total national steel production in 2019 into consideration. Taking data from 10 associated business groups responsible for 85% of total national steel production in 2020 into consideration.

Accidents by Type - Company Workforce

At work In transit
2018 588 93
2019 358 59
2020 259 26
Source: Brazil Steel Institute.
Note: Taking data from 11 associated business groups responsible for 98% of total national steel production in 2018 into consideration. Taking data from 10 associated business groups responsible for 89% of total national steel production in 2019 into consideration. Taking data from 10 associated business groups responsible for 85% of total national steel production in 2020 into consideration.

Accidents by Type - Subcontractors

At work In transit
2018 419 51
2019 389 68
2020 201 14
Source: Brazil Steel Institute.
Note: Taking data from 11 associated business groups responsible for 98% of total national steel production in 2018 into consideration. Taking data from 10 associated business groups responsible for 89% of total national steel production in 2019 into consideration. Taking data from 10 associated business groups responsible for 85% of total national steel production in 2020 into consideration.

Accident By Severity - Company Workforce

Time lost accidents Accident with no time lost Fatal accidents
2018 171 505 5
2019 117 298 2
2020 77 206 2
Source: Brazil Steel Institute.
Note: Taking data from 11 associated business groups responsible for 98% of total national steel production in 2018 into consideration. Takin data from 10 associated business groups responsible for 89% of total national steel production in 2019 into consideration. Taking data from 10 associated business groups responsible for 85% of total national steel production in 2020 into consideration.

Accident by Severity - Subcontractors

Time lost accidents Accident with no time lost Fatal accidents
2018 94 361 15
2019 94 359 4
2020 51 163 1
Source: Brazil Steel Institute.
Note: Taking data from 11 associated business groups responsible for 98% of total national steel production in 2018 into consideration. Takin data from 10 associated business groups responsible for 89% of total national steel production in 2019 into consideration. Taking data from 10 associated business groups responsible for 85% of total national steel production in 2020 into consideration.

Training and Benefits

Training

In total, employees at Brazilian steel production companies associated with the Brazil Steel Institute completed more than 12,000,000 hours of training in the last three years. A record was set in 2020, with almost 7,000,000 hours of training completed.

This number was reached due to the majority of training being moved to a virtual format offering more agility and inclusion. Due to the ease in access provided by the virtual format, this measure resulted in greater participation from collaborators and more training being held.

2018 1.952.015 hours
2019 4.038.278 hours
2020 6.727.003 hours
Source: Brazil Steel Institute
Note: Taking data from 11 associated business groups responsible for 98% of total national steel production in 2018 into consideration. Taking data from 10 associated business groups responsible for 89% of total national steel production in 2019 into consideration. Taking data from 10 associated business groups responsible for 85% of total national steel production in 2020 into consideration

Benefits

The main benefits received by workers in the sector include meal allowances and health coverage for all employees, as well as childcare vouchers and participation in profits and results.


Benefits at Associated Companies by %

2018 2019 2020
Meal allowance 90,0% 100,0% 100,0%
Full transport voucher 60,0% 70,0% 70,0%
Childcare/Childcare voucher 70,0% 70,0% 70,0%
Life insurance 80,0% 90,0% 90,0%
Healthcare plan 90,0% 100,0% 100,0%
Disability coverage 50,0% 80,0% 70,0%
Private pension plan 80,0% 80,0% 70,0%
Participation in profits and results 80,0% 80,0% 90,0%
Source: Brazil Steel Institute
Note: Taking data from 11 associated business groups responsible for 98% of total national steel production in 2018 into consideration. Taking data from 10 associated business groups responsible for 89% of total national steel production in 2019 into consideration. Taking data from 10 associated business groups responsible for 85% of total national steel production in 2020 into consideration.

Individuals hired from local communities and impact on local development

Steel producing companies associated with the Brazil Steel Institute maintain a close relationship with the communities in which they operate, adhering to well-established formal guidelines. In addition to contracting the local labor force, associated companies carry out periodic assessments of the impacts on communities through means of communication channels and programs, which include existing studies and assessment of results.

The humanitarian actions carried out by our associate companies during the pandemic in specific had a direct impact on protecting the lives of millions of people.

Local labor force

Average % of Collaborators from Local Communities

2018 78,8
2019 74,0
2020 75,6
Source: Brazil Steel Institute.
Note: Taking data from 11 associated business groups responsible for 98% of total national steel production in 2018 into consideration. Taking data from 10 associated business groups responsible for 89% of total national steel production in 2019 into consideration. Taking data from 10 associated business groups responsible for 85% of total national steel production in 2020 into consideration.

Parameters used to assess impacts and development programs in local communities

Unit of Measurement: % of associate companies
2018 2019 2020
Social impact assessment 50,0% 50,0% 50,0%
Environmental impact assessment and monitoring 80,0% 90,0% 90,0%
Transparency in social impact and environmental assessment results 60,0% 70,0% 70,0%
Local development programs based on community needs 50,0% 60,0% 60,0%
Mapping of target audiences for engagement and participation planning 50,0% 40,0% 50,0%
Formal channels for relationship with local community 70,0% 80,0% 80,0%
Source: Brazil Steel Institute
Note: Taking data from 11 associated business groups responsible for 98% of total national steel production in 2018 into consideration. Taking data from 10 associated business groups responsible for 89% of total national steel production in 2019 into consideration. Taking data from 10 associated business groups responsible for 85% of total national steel production in 2020 into consideration.

TERNIUM INVESTS IN EDUCATION TO PROMOTE SOCIAL TRANSFORMATION

Education as a path towards social transformation. This is Ternium’s vision, which has been changing the reality faced by one of Rio de Janeiro’s poorest neighborhoods: Santa Cruz. Projects for academic support, bursaries, sports and music projects are among the company’s initiatives in the region.

 
 

TERNIUM INVESTS IN EDUCATION TO PROMOTE SOCIAL TRANSFORMATION

Investing in education as a means of social transformation is a strategic vision for Techint Group’s operations worldwide. In Brazil, Ternium has doubled its private business investments in the industrial center in Santa Cruz, in the state of Rio de Janeiro, in order to maximum education projects and the region’s development. Santa Cruz has the city’s worst poverty indicators, with only 7.9% above 18 years old completing high school and 26.3% of young people outside of the job market and educational institutes.

Between 2018 and 2020, Ternium invested more than R$ 15 million in projects for extra educational support, bursaries for high-performing high school and post-secondary students, provided renovations for four educational institutes, developed sports initiatives, and started an orchestra in the Santa Cruz neighborhood. The projects, which were completed as part of a government partnership, directly benefited more than 7 thousand people.

Stimulus, partnerships and initiatives, Ternium believes in the power of social transformation.

CSP INVESTS IN SUSTAINABLE SOCIOECONOMIC GROWTH AND COMMUNITY SUPPORT

The initiatives for sustainable socioeconomic development made by Companhia Siderúrgica do Pecém’s (CSP) have directly impacted more than 33,600 residents of São Gonçalo do Amarante, in the Brazilian state of Ceará. The company offers programs such as Território Empreendedor (Entrepeneur Territory), which are focused on stimulating local business.

 
 

CSP INVESTS IN SUSTAINABLE SOCIOECONOMIC GROWTH AND COMMUNITY SUPPORT

Companhia Siderúrgica do Pecém (CSP), located in São Gonçalo do Amarante, in the state of Ceará, was formed in 2008 and began producing steel plates in 2016. Since its implementation phase, CSP has promoted sustainable socioeconomic development, acting as a catalyst for change in the community in which it operates. R$ 40.6 million has been invested in social responsibility programs which have so far benefited 33,600 people.

CSP investe em crescimento socioeconômico sustentável e apoio à comunidade

One of the programs created by CSP is Território Empreendedor (Entrepeneur Territory), the objectives of which are to stimulate and generate local businesses, increase job creation and incomes, and attract new suppliers to the region. The program benefits potential entrepeneurs in both the formal and informal job markets and those located in rural areas, as well as public schools in the municipalities of São Gonçalo do Amarante and Caucaia.

Around one thousand people were directly reached through the actions of the Território Empreendedor program.

Supplier Assessment

As part of their ethical responsibility for sustainable development in the regions in which they work, the steel production companies associated with Brazil Steel Institute have implemented rigorous criteria for selecting and forming relationships with suppliers.

Unit of Measurement: % of associate companies
Criteria considered in supplier assessment 2018 2019 2020
Include policies and criteria for supplier relationships in code of conduct and/or value statement 90,0% 100,0% 100,0%
When selecting suppliers (or developing new suppliers), include the proven practice of ethical management processes for information of a private nature obtained in relationships with clients or with the market in general 100,0% 100,0% 90,0%
Possesses an explicit policy or specific program for business social responsibility for supplier chain 80,0% 80,0% 90,0%
Discusses issues related to social responsibility with suppliers for the purposes of training and making adjustments with suppliers, as well adjusting their criteria 80,0% 80,0% 70,0%
Source: Brazil Steel Institute
Note: Taking data from 11 associated business groups responsible for 98% of total national steel production in 2018 into consideration. Taking data from 10 associated business groups responsible for 89% of total national steel production in 2019 into consideration. Taking data from 10 associated business groups responsible for 85% of total national steel production in 2020 into consideration.
 

03

THE ENVIRONMENTAL
SCENARIO

STEEL AND THE CIRCULAR ECONOMY

The concept of a Circular Economy, previously existing exclusively within the sphere of industry, has become a topic of discussion throughout society due to increasing concern for preserving the planet. Circular Economy is a model for production and consumption that goes beyond recycling and disassociates the recurring use of natural resources from economic development, which is a fundamental characteristic of a Linear Economy.

In this new economic model, almost nothing is thrown away. Materials that are used in or result from production processes can be reused and remanufactured, as well as repeatedly recycled in the manufacturing of new products, reducing the demand for natural resources.


CIRCULAR ECONOMY

Steel therefore not only offers the qualities necessary for implementing a Circular Economy, but also presents significant advantages to transitioning from a Linear Economy to the Circular Economy model. It is infinitely 100% recyclable without a loss in quality. Steel is the most reused material on the planet, with 630 million tons recycled each year according to data from worldsteel.

Each year, the steel industry promotes the adoption of a circular economy through innovations in technology and processes. Some examples of the steel industry taking action towards developing a Circular Economy allowing the reappropriation of supplies and a reduction in the use of virgin material and disposal of materials are:

  • Use of steel co-products in paving of roads, civil construction, and in agriculture;
  • Adoption of technologies allowing the reappropriation o of gases produced in steel production processes;
  • Maximizing the use of steel scrap in production processes.

These examples contribute greatly to adaptations made as part of the ESG (Environmental, Social and Governance) framework. Even before this concept was widely disseminated worldwide, the companies associated with the Brazil Steel Institute were already taking action – both internally and vis-a-vis society – as part of a commitment towards developing practices for social and environmental responsibility governed by ethics and transparency, such as public awareness campaigns with respect to the importance of steel recycling and proper disposal, as well as workforce training for the same purposes.


Benefits of a Circular Economy

  • Reduction in the use of non-renewable natural resources;
  • Reduction in greenhouse gas emissions;
  • Incentives for the production of easily recyclable products;
  • Stimulation of recycling;
  • Job creation.


Actions taken by the steel industry towards developing a Circular Economy have resulted in wide-ranging benefits for society, including job creation, the availability of durable products, a reduction in polluting agents released into the environment, and the preservation of natural resources for future generations.

Indicators for environmental performance demonstrate the action taken by the steel industry towards this new model.

SINOBRAS INVESTS IN RECYCLABLE PRODUCTIONS IN NORTH/NORTHEST OF BRAZIL.

Siderúrgica Norte Brasil S.A (SINOBRAS) is the first integrated steel producer in Brazil’s Northern region. 70% of the company’s steel is produced using scrap provided through steel recycling, and the other 30% is provided using liquid pig iron.

 
 

SINOBRAS INVESTS IN RECYCLABLE PRODUCTION IN THE NORTH/NORTHEST OF BRAZIL

Extremely adept with the circular economy, Siderúrgica Norte Brasil S.A (SINOBRAS), the first integrated steelmaker in the North and Northeast regions of Brazil, is working tirelessly to mitigate the impact of steel production on the environment. Recycling ferrous scrap is now its main sustainable process: 70% of the company’s steel is produced using scrap, with the remaining 30% using liquid pig iron.

Case Ambiental 2

The recycling process contributes greatly to the preservation of the environment, reducing the volume of waste destined for landfills or even disposed of, and also reducing the use of fossil fuels and energy waste in steel production. Ferrous scrap was a pioneering material for recycling in steelmaking and is today one of the main inputs used by SINOBRAS.

Extremely adept with the circular economy, SINOBRAS is investing in recyclable production in the North and Northeast of Brazil

ENVIRONMENTAL PERFORMANCE

Throughout the last three years, the steel industry has persevered with its environmental protection programs, encouraging the reasonable usage of natural and energy resources, even in the face of the increasingly accentuated economic crisis which began during the first few months of the the Covid-19 pandemic in 2020.

Between 2018 and 2020, the steel industry invested more than R$ 2.6 billion towards environmental action optimizing technical processes and programs focused on sustainability and reducing CO2 emissions associated with steel production.

Certification

The companies associated with Brazil Steel Institute are signatories to a variety of voluntary initiatives both in society and the business community with the objective of promoting sustainable development.

The main certifications that have been received are:

Certification Steel sector
ISO 9001 – Certifies best practices for management and relationships with clients and suppliers Companies responsible for 100% of crude steel production certified under ISO 9001 in 2018, 2019 and 2020
ISO 14001 - Requires a commitment to preventing pollution and continuous improvement, which are part of standard business management Adopted by companies responsible for 98% of crude steel in 2018, 2019 and 2020
OHSAS18001 - Defines the requirements for best practices for management of health and work safety Certification adopted by companies responsible for 46% of crude steel production in 2018 and 44% in 2019 and 2020
FSC (Forest Stewardship Council International) - Certifies that a product’s raw materials do not negatively affect the environment The total percentage of crude steel produced using FSCcertified planted forests was 47% in 2018, 42% in 2019, and 46% in 2020.
CERFLOR - Provides certification for sustainable forest management and the chain of custody of forest based products The total crude steel produced using CERFLOR-certified planted forests: 21% in 2018, 19% in 2019, and 17% in 2020
Source: Brazil Steel Institute.
Note: Taking data from 10 associated business groups responsible for 98% of total national steel production in 2018 into consideration. Taking data from 10 associated business groups responsible for 89% of total national steel production in 2019 into consideration. Taking data from 10 associated business groups responsible for 85% of total national steel production in 2020 into consideration. Only companies integrated with charcoal were taken into consideration for FSC and CERFLOR.

Raw materials and energy

More than 50% of the consumption of electrical energy in steelworks was self-generated. Self-generated energy obtained through reappropriating gases from coking plants, blast furnaces, and steel mills in thermal power plants, or through means of hydroelectric plants, is just one more characteristic inserting the steel industry into the Circular Economy.

Energy source (%) 2018 2019 2020
Self-generated 56% 51% 51%
Purchased 44% 49% 49%
Source: Brazil Steel Institute.
Note: Taking data from 10 associated business groups responsible for 98% of total national steel production in 2018 into consideration. Taking data from 10 associated business groups responsible for 89% of total national steel production in 2019 into consideration. Taking data from 10 associated business groups responsible for 85% of total national steel production in 2020 into consideration.


Consumption of externally sourced raw materials* (10³ t) 2018 2019 2020
Coal / anthracite 15.101 12.176 11.319
Coke 3.232 1.908 1.495
Petroleum coke 1.339 1.496 1.443
Charcoal 1.414 1.717 1.573
Iron ore¹ 43.939 36.797 33.856
Manganese ore 126 122 109
Pig iron 1.509 1.368 1.208
Iron and steel scrap 6.169 5.205 5.456
Raw dolomite 1.823 1.967 1.544
Raw limestone 3.426 2.321 2.332
Calcitic limestone / dolomitic limestone² 2.304 2.284 2.016
Ferroalloys 523 436 407
Total 80.905 67.797 62.758
Source: Brazil Steel Institute.
*Taking materials purchased by companies into consideration. Does not include internally produced materials.
1 - Includes pellets
2 - Includes fluorite
Note: Taking data from 10 associated business groups responsible for 98% of the crude steel production in 2018 into consideration. Taking data from 10 associated business groups responsible for 89% of the crude steel production in 2019 into consideration. Taking data from 10 associated business groups responsible for 85% of the crude steel production in 2020 into consideration.
Consumption of externally sourced raw materials (10³ t) 2018 2019 2020
Coke 9.293 7.350 6.967
Sinter 30.761 27.173 25.754
Pig iron 27.253 23.024 20.645
Iron and steel scrap 3.059 2.584 2.501
Calcitic limestone / dolomitic limestone¹ 627 150 179
Total 70.992 60.281 56.046
Source: Brazil Steel Institute
Note: Taking data from 10 associated business groups responsible for 98% of the crude steel production in 2018 into consideration. Taking data from 10 associated business groups responsible for 89% of the crude steel production in 2019 into consideration. Taking data from 10 associated business groups responsible for 85% of the crude steel production in 2020 into consideration.
Energy matrix (%) 2018 2019 2020
Coal / Coke 75,6% 71,0% 70,3%
Petroleum derivatives 14,2% 15,4% 16,0%
Charcoal 5,9% 8,8% 8,8%
Electricity 4,2% 4,8% 4,9%
Source: Brazil Steel Institute.
Note: Taking data from 10 associated business groups responsible for 98% of the crude steel production in 2018 into consideration. Taking data from 10 associated business groups responsible for 89% of the crude steel production in 2019 into consideration. Taking data from 10 associated business groups responsible for 85% of the crude steel production in 2020 into consideration.


Water

Companies in the sector continue to invest in water recirculation systems that reduce demand for externally sourced water. Associated companies reuse almost almost the entire amount of freshwater required by the steel production process. In 2018, the percentage of water reappropriated was 85%; in 2019 and 2020, it was 97%.

Recirculated freshwater (106 m3)
2018 5.001
2019 4.647
2020 4.701
Source: Brazil Steel Institute.
Note: Taking data from 10 associated business groups responsible for 98% of total national steel production in 2018 into consideration. Taking data from 10 associated business groups responsible for 89% of total national steel production in 2019 into consideration. Taking data from 10 associated business groups responsible for 85% of total national steel production in 2020 into consideration.

Co-Products and Waste

More than 90% of the co-products and waste generated during the steel production process is reappropriated.

Steel aggregates have been used in road paving as prime coat, bases, and sub-bases, replacing gravel and other civil construction materials. Steel co-products and waste can also be used in agriculture as substitute for limestone in correcting soil acidity. Blast furnace slag is also already being used in cement production.

Specific co-products and waste generation (kg/t crude steel) 2018 2019 2020
Specific co-products and waste generation 619 620 622
Source: Brazil Steel Institute.
Note: Taking data from 10 associated business groups responsible for 98% of the crude steel production in 2018 into consideration. Taking data from 10 associated business groups responsible for 89% of the crude steel production in 2019 into consideration. Taking data from 10 associated business groups responsible for 85% of the crude steel production in 2020 into consideration.
Destination of co-products and waste 2018 2019 2020
Reuse 95% 94% 93%
Inventory 1% 2% 2%
Final disposal 4% 4% 5%
Source: Brazil Steel Institute.
Note: Taking data from 10 associated business groups responsible for 98% of the crude steel production in 2018 into consideration. Taking data from 10 associated business groups responsible for 89% of the crude steel production in 2019 into consideration. Taking data from 10 associated business groups responsible for 85% of the crude steel production in 2020 into consideration.
Co-products and waste generation by type 2018 2019 2020
Blast Fumace Aggregate 40% 39% 40%
Mill Aggregate 27% 25% 25%
Fines and dusts 7% 6% 6%
Sludge 6% 4% 4%
Other Co-products and Waste 20% 26% 25%
Source: Brazil Steel Institute.
Note: Taking data from 10 associated business groups responsible for 98% of the crude steel production in 2018 into consideration. Taking data from 10 associated business groups responsible for 89% of the crude steel production in 2019 into consideration. Taking data from 10 associated business groups responsible for 85% of the crude steel production in 2020 into consideration.
Destination of blast furnace steel slag aggregates 2018 2019 2020
Sale 91% 87% 94%
Passive inventory 8% 12% 4%
Reuse 1% 1% 2%
Source: Brazil Steel Institute.
Note: Taking data from 10 associated business groups responsible for 98% of the crude steel production in 2018 into consideration. Taking data from 10 associated business groups responsible for 89% of the crude steel production in 2019 into consideration. Taking data from 10 associated business groups responsible for 85% of the crude steel production in 2020 into consideration.
Destination of steel-mill slag aggregates and other wastes 2018 2019 2020
Sale 28% 25% 23%
Internal Reuse 26% 22% 13%
Donation 21% 37% 27%
Passive inventory 23% 14% 36%
Final disposal 2% 2% 1%
Source: Brazil Steel Institute.
Note: Taking data from 10 associated business groups responsible for 98% of the crude steel production in 2018 into consideration. Taking data from 10 associated business groups responsible for 89% of the crude steel production in 2019 into consideration. Taking data from 10 associated business groups responsible for 85% of the crude steel production in 2020 into consideration.
Application of steel-mill slag aggregates and other waste 2018 2019 2020
Road base and sub-base 44% 71% 78%
Earth leveling 39% 16% 8%
Other uses 12% 10% 11%
Agricultural use 4% 3% 3%
Concrete aggregates 1% 1% 1%
Source: Brazil Steel Institute.
Note: Taking data from 10 associated business groups responsible for 98% of the crude steel production in 2018 into consideration. Taking data from 10 associated business groups responsible for 89% of the crude steel production in 2019 into consideration. Taking data from 10 associated business groups responsible for 85% of the crude steel production in 2020 into consideration.

USIMINAS PROVIDES SUPPORT TO 1.3 MILLION RESIDENTS OF RURAL AREAS IN EASTERN MINAS GERAIS

In recent years, the Usiminas Mobiliza pelos Caminhos do Vale platform has restored more than 3 thousand kilometers of roads in 84 municipalities across the state of Minas Gerais. The initiative, recognized by the World Steel Association for its excellence in sustainability make education, healthcare, and other services more easily accessible for members of the population.

 
 

USIMINAS PROVIDES SUPPORT TO 1.3 MILLION RESIDENTS OF RURAL AREAS IN EASTERN MINAS GERAIS

In the last five years, the Usiminas Mobiliza pelos Caminhos do Vale platform has directly benefited more than 1.3 million people in Eastern Minas Gerais through the restoration of roads. The initiative has provided the population with greater access to education and healthcare.

Recognized by the World Steel Association for its excellence in sustainability, the program expanded the numbers of municipalities that it serves in 2020, bringing the total to 84. These actions helped to foster an even closer relationship between the company and communities, allowing for the formation of partnerships and resulting in more sustainable practices.

The Usiminas Mobiliza pelos Caminhos do Vale program was recognized by the World Steel Association and received the Hugo Werneck Award.

Charcoal

In 2020, 11.2% of steel production was carried out using charcoal.

Crude steel production (%) 2018 2019 2020
% using charcoal route 10,9% 11,6% 11,2%
Source: Brazil Steel Institute.
Note: Includes the entire steel production park.

Of this total, 84% of the wood used in producing charcoal came from company-planted forests, 13% from forests planted by subcontractors and 2% through legal forest waste.

Charcoal origin (%) 2018 2019 2020
Company-planted forests 85% 81% 84%
Forests planted by subcontractors 13% 17% 13%
Legal forest waste 2% 2% 2%
Source: Brazil Steel Institute.
Note: It only considers charcoal-based integrated companies.
Reforested areas (Hectares) 2018 2019 2020
Reforested areas used for charcoal production 734.219 822.252 825.998
Source: Brazil Steel Institute.
Note: It only considers charcoal-based integrated companies.
Reforested areas (%) 2018 2019 2020
Protected and environmental restoration areas maintained by companies under legal requirements 33% 33% 32%
Protected and restoration areas voluntarily cultivated 7% 6% 5%
Forests for economic use 60% 61% 62%
Source: Brazil Steel Institute.
Note: It only considers charcoal-based integrated companies.

CARBOVAL IS VALLOUREC'S NEW SOLUTION FOR REDUCIING CO2 EMISSIONS

Innovation is part of Vallourec’s DNA. In recent years, the company has dedicated itself to creating technology focused on increasing efficiency in the steel manufacturing process, making use of subproducts from wood carbonization, and reducing CO2 emissions. Known as Carboval, this vertical continuous carbonization reactor transforms wood into charcoal without releasing methane or carbon monoxide.

 
 

CARBOVAL IS VALLOUREC'S NEW SOLUTION FOR REDUCIING CO2 EMISSIONS

A commitment to sustainability has guided Vallourec’s actions towards innovation. Vallourec’s recent sustainable charcoal production project, a global pioneer 100% produced in Brazil and already patented in countries such as Chile, the United States, Argentina, and Canada, is proof of this commitment. Known as Carboval, the technology, the operational and environmental efficiency of which was proven through eight years of testing and experience gained at the pilot plant in Paraopeba (MG), is designed to increase process efficiency, make use of subproducts obtained from wood carbonization, and reduce CO2 emissions.

Case Environmental 3

Carboval is a vertical continuous carbonization reactor that transforms wood into charcoal without releasing methane or carbon monoxide into the atmosphere. In just 16 hours, it is capable of producing 22 tons of high-quality charcoal while using 95% of the energy provided by the raw material. Carboval is a substitute for the conventional rectangular furnace, in which the production cycle takes 16 days to generate 50 tons of charcoal using a maximum of 55% of the wood’s energy.

A commitment to sustainability has guided Vallourec’s actions towards innovation.

APERAM’S GOAL IS TO ACHIEVE ZERO CARBON FOOTPRINT BY 2050.

With a commitment to making itself carbon neutral by 2050, Aperam has made sustainability the guiding principle for its business conduct. The company recently announced new targets for 2030, such as a 30% reduction in CO2 emissions.

 
 

APERAM’S GOAL IS TO REACH ZERO CARBON FOOTPRINT BY 2050.

We cannot hesitate in making advances in sustainability. This is the premise that guides Aperam’s actions across all of its operations. Even during the challenging scenario imposed by the pandemic, the company established an audacious action plan for reducing CO2 emissions. Aperam has established new targets for 2030 (-30%) and has made a commitment to becoming a carbon neutral company by 2050.

Case Ambiental 4

Aperam’s privileged position is a source of pride for its almost 10 thousand employees and is a result of three primary factors. The first factor is the electric arc furnaces used in its European plants (Belgium and France), which use scrap metal instead of raw materials. The second factor is with respect to the reduced levels of energy consumption due to the low carbon energy matrix used in all of Aperam’s operations. And, finally, the main factor: Aperam’s South American Brazilian operations is the only steelmaking process in the world that produces flat steel products using 100% charcoal.

Aperam South America’s Brazilian operations is the only steelmaking process in the world that produces specialized flat steel products using 100% charcoal.

CLIMATE CHANGE

The growth of the global population coupled with a standard of large-scale consumption has impacted ecosystems around the world. Increased greenhouse gas emissions, a dramatic increase in the use of non-renewable natural resources, and the improper disposal of waste to the detriment of reuse and recycling are just some of the issues that need to be urgently addressed by governments and the world’s population in order to avoid increasingly damaging effects on the planet, specifically with regards to climate change.

The steel industry has sought to develop innovative solutions that make it possible to reduce the carbon footprint associated with its operations and the use of its products.

Greenhouse gas emissions made by Brazilian steel producers using the methodologies of the World Steel Association and IPCC

GHG Emissions (worldsteel) 2018 2019 2020
Absolute emissions (10³ t CO2) 64.649 50.822 47.013
Specific emissions (t CO2/t crude steel) 1,9 1,8 1,7
GEE Emissions (IPCC) 2018 2019 2020
Absolute emissions (10³ t CO2) 61.626 47.732 44.752
Specific emissions (t CO2/t crude steel) 1,8 1,7 1,6
Source: Brazil Steel Institute.
Note: Taking data from 10 associated business groups responsible for 98% of the crude steel production in 2018 into consideration. Taking data from 10 associated business groups responsible for 89% of the crude steel production in 2019 into consideration. Taking data from 10 associated business groups responsible for 85% of the crude steel production in 2020 into consideration.

Innovation

The Brazilian steel industry introduced a pioneering initiative in which charcoal is used as a reducing agent for iron ore in blast furnaces in order to reduce the carbon footprint associated with steel production.

A steelmaking route integrated with charcoal provides Brazil with a major competitive advantage in comparison to steel producers from other countries. 11% of Brazilian steel production is currently obtained using charcoal as a substitute for coal.

Produced using wood taken from forests planted by the companies themselves (biomass), charcoal is an input of a renewable origin. Over the years, steelmaking companies have been optimizing techniques used in the planting and sustainable management of forests. Fast-growing tree species that are ready for cutting within 5 to 10 years are converted into charcoal, which feed blast furnaces used to reduce iron ore to metallic iron. The uptake in CO2 occurring during the growth of trees compensates for the volume of CO2 released during the steel production process.

AÇO VERDE DO BRASIL BECOMES THE WORLD’S FIRST CARBON NEUTRAL STEEL MILL

Aço Verde do Brasil (AVB), which is part of the Ferroeste Group, received certification declaring it the first steelmaker in the world to produce carbon neutral steel. The company makes exclusive use of renewable energy and reuses co-products resulting from its production processes.

 
 

AÇO VERDE DO BRASIL BECOMES THE WORLD’S FIRST CARBON NEUTRAL STEEL MILL

Aço Verde Brasil (AVB), which is part of the Ferroeste Group, is the first steelmaker in the world to produce carbon neutral steel. Receiving this certification in 2020 was the crowning achievement in longstanding efforts towards sustainable activities and investments in innovation and technology. Today, AVB exclusively uses renewable energy and reuses co-products resulting from its production processes.

Case Enviroment 5

The certification was granted by Société Générale de Surveillance (The General Surveillance Society, or SGS), which was contracted to verify AVB’s greenhouse gas emissions inventory between 2018 and 2020. Work adhered to the GHG Protocol and methods recognized internationally by the World Steel Association. AVB chose the “ton of CO2 per ton of crude steel” indicator to guide its operational and investment decisions.

In order to receive this certification, AVB adopted reforested charcoal as its main raw material.

 
INDUSTRIAL PARK AND LOCATION OF STEEL MILLS
PRODUCTS AND MARKETS
PERFORMANCE OF COMPANIES IN THE SECTOR
INTERNATIONAL TRADE
STEEL PRODUCTION PROCESS

04

Sector INFORMATION

FOR THE BRAZILIAN STEEL INDUSTRY

INDUSTRIAL PARK AND LOCATION OF STEEL MILLS

Brazil’s steel industrial park consists of 31 steel mills (15 integrated and 16 semi-integrated / mini-mills). There are 12 business groups with an installed capacity of 51 million t of crude steel per year. The Brazilian steel industry has steelworks located in 10 Brazilian states, with the largest concentration found in the Southeast Region.

Steel Production Park

31 steel mills (15 integrated and 16 mini-mills), administered by 12 different groups

Parque Produtor de Aço, 31 usinas (15 integradas e 16 mini-mills), administradas por 12 grupos
 

Long Products

 

Flat Products

 

Flat and Long Products

 

Semi-finished Products

 

Seamless Steel Tubes

Source: Brazil Steel Institute.
Note: Taking all Brazilian steel mills with a capacity for crude steel production in 2020/2021 into consideration.
In 2018/2019, there were 32 steel mills located in 11 Brazilian states.

Regional distribution of crude steel production

Brazil’s Southeast Region was responsible for producing 27 million tons of steel in 2020, representing 86% participation in the national steel market. Minas Gerais continues to be the state with the highest concentration of production, with 31.2% of the national market in 2020.

State 2018 (103 t) Participation % 2019 (103 t) Participation % 2020 (103 t) Participation %
Minas Gerais 10.594 29,9 10.408 32,0 9.803 31,2
Rio de Janeiro 10.406 29,4 8.750 26,9 9.189 29,3
Espírito Santo 7.304 20,6 6.599 20,3 5.405 17,2
Ceará 3.089 8,7 2.977 9,1 2.855 9,1
São Paulo 2.382 6,7 2.265 6,9 2.613 8,3
Rio Grande do Sul 779 2,2 671 2,1 668 2,1
Pará 344 1,1 345 1,1 330 1,1
Maranhão 279 0,8 338 1,0 321 1,0
Pernambuco 230 0,6 216 0,6 231 0,7
BRAZIL 35.407 100 32.569 100 31.415 100
Source: Brazil Steel Institute.
Note: Includes entire Brazilian steel industrial park.

Industrial Areas (2018 - 2020)

Source: Brazil Steel Institute.
Note: Taking data from 10 associated business groups responsible for 98% of the crude steel production in 2018 into consideration. Taking data from 10 associated business groups responsible for 89% of the crude steel production in 2019 into consideration. Taking data from 10 associated business groups responsible for 85% of the crude steel production in 2020 into consideration.

PRODUCTS AND MARKETS

The Covid-19 pandemic, which began in 2020, affected industrial production around the world. However, despite the crisis caused by the pandemic, the global steel sector closed off the year with a relatively small increase of 0.2% relative to the previous year. Global production in 2020 reached 1877 million tons of crude steel in 2020, ahead of 1874 million tons in 2019 and 1826 million tons in 2018.

In 2020, Brazil saw a drop in crude steel production relative to previous years: 31.4 million tons of crude steel were produced within Brazil’s national territory compared to 32.6 million tons in 2019 and 35.4 million tons in 2018. Our nation is the ninth-ranked steel producer in the world, a ranking led by China. Brazil is the leader in steel production in Latin America, singlehandedly responsible for more than 55% of the region’s total production.

Indicator Unit. 2018 2019 2020
Global Crude Steel Production 106 t 1.826 1.874 1.877
Europe 106 t 209 196 179
Economic use 106 t 167 157 139
Other European countries 106 t 42 39 40
CIS 106 t 101 100 100
North America 106 t 100 101 84
USA 106 t 87 88 73
Canada 106 t 13 13 11
Latin America 106 t 66 61 56
Brazil 106 t 35 33 31
Other countries 106 t 31 28 25
Africa 106 t 18 17 17
Egypt 106 t 8 7 8
Other countries 106 t 10 10 9
Middle East 106 t 43 44 45
Asia 106 t 1.283 1.348 1.390
China 106 t 929 995 1.065
India 106 t 109 111 100
Japan 106 t 104 99 83
Other countries 106 t 141 142 142
Oceania 106 t 6 7 6
Source: worldsteel. Source for Latin American countries: ALACERO
Note: Data corresponding to crude steel production made by countries associated with World Steel Association.
Indicator Unit. 2014 2015 2016 2017 2018 2019 2020
Crude Steel 103 t 33.897 33.258 31.642 34.778 35.407 32.569 31.415
Domestic Sales 103 t 21.709 18.173 16.828 17.247 18.920 18.799 19.462
Apparent Consumption of Steel Products 103 t 25.606 21.295 18.520 19.523 21.207 20.977 21.449
Source: Brazil Steel Institute / Min. of Economy / Secex.
Note: Includes the entire Brazilian steel industrial park.

In 2018, domestic sales increased 9.7% in comparison to the previous year, up to 18.9 million tons. In 2019, ahead of a domestic market that was close to stagnation, domestic sales dropped 0.6%, while in 2020, with a recovery in the economy beginning in the 2nd half of the fiscal year, domestic sales reached the highest levels seen since 2014.

During the three-year period from 2018 to 2020, the apparent consumption of national steel products consisted of, on average, 90% domestic sales and 10% imported products. In 2020, apparent consumption also reached the highest level seen since 2014.

The main steel-consuming sectors in Brazil - civil construction, capital goods, the automotive industry, and manufacturers of household appliances - together represented 82.1% of consumption in 2020 and 82.2% in 2019. In 2018, these sectors consumed 80.0% of the steel products in Brazil.

Civil construction set itself apart once again as the main consumer sector for steel products, presenting the biggest increase in participation in apparent consumption. Between 2018 and 2019, this sector’s consumption increased by 4.2 percentage points and by 3.6 points between 2019 and 2020.

Distribution of apparent consumption by sector - 2018

Distribution of apparent consumption by sector - 2019

Distribution of apparent consumption by sector – 2020

Source: Brazil Steel Institute / Ministry of Economy.
Note: Includes entire Brazilian steel industrial park.

PERFORMANCE OF COMPANIES IN THE SECTOR

The importance of the steel sector with regards to sustainable economic development in Brazil can be measured through its value added or, in other words, the wealth aggregated through the transformation of its products. In 2020, the value added generated by the steel industry achieved 36.6% growth when compared to the previous year, reaching R$ 32.1 billion.

Value added

Unit of Measurement: R$ 1.000
Description 2018 2019 2020
(A) Gross Revenue 104.867.122 100.931.863 108.735.282
(B) Inputs Acquired by Third Parties (72.310.266) (77.446.944) (76.657.418)
(C) Gross Value Added (A - B) 32.556.857 23.484.919 32.077.864
(D) Retention (3.787.440) (3.938.252) (4.383.591)
(E) Company-produced Net Value Added (C - D) 28.769.417 19.546.667 27.694.273
(F) Transfers 7.283.487 7.618.331 12.011.033
Equity Result 3.935.449 5.442.340 8.145.156
Equity Result 3.348.038 1.882.088 3.333.759
Other - 293.903 532.118
(G) Distributable Value Added (E + F) 36.052.903 27.164.998 39.705.306


Value added

Unit of Measurement: R$ 1.000
Description 2018 2019 2020
Distribution of Value Added: 36.052.903 27.164.998 39.705.306
Distribution of Value Added: 6.868.318 6.989.211 7.410.595
LABOR REMUNERATION (Personnel and Costs) 10.700.031 6.962.058 11.642.953
GOVERNMENT REMUNERATION (Taxes, Fees and Contributions) 6.828.057 7.538.780 8.992.318
FINANCER REMUNERATION 11.656.498 5.674.949 11.659.440
Source: Brazil Steel Institute.
Note: Taking data from 9 associated business groups responsible for 77% of the crude steel production in 2018 into consideration. Taking data from 9 associated business groups responsible for 76% of the crude steel production in 2019 into consideration. Taking data from 9 associated business groups responsible for 75% of the crude steel production in 2020 into consideration.

INTERNATIONAL TRADE

In international trade, exports fell over the three-year period to the lowest level since 2014. The main reason was the prioritization of market supply responsible for 90% of the demand for steel produced in Brazil.

Indicator Unit. 2018 2019 2020
Exports 103 t
106 US$ FOB
13.945
8.873
12.805
7.308
10.538
5.271
Semi-finished Products 103 t
106 US$ FOB
9.195
5.045
8.643
4.184
7.715
3.212
Flat Rolled Steel Products 103 t
106 US$ FOB
2.505
1.775
2.171
1.375
1.398
855
Rolled Long Steel Products 103 t
106 US$ FOB
1.724
1.378
1.743
1.437
1.220
945
Other 103 t
106 US$ FOB
521
675
248
312
205
259
Imports 103 t
106 US$ FOB
2.407
2.610
2.365
2.463
2.037
2.172
Semi-finished Products 103 t
106 US$ FOB
173
105
211
115
79
51
Flat Rolled Steel Products 103 t
106 US$ FOB
1.433
1.258
1.292
1.088
1.195
1.002
Rolled Long Steel Products 103 t
106 US$ FOB
454
553
505
608
441
560
Other 103 t
106 US$ FOB
347
694
357
652
322
559
Source: Min. of Economy / SECEX

STEEL PRODUCTION PROCESS

In Brazil, there are two technological routes for steelmaking: the integrated route and the semi-integrated route. The first route brings together the three basics of production: reduction, refining, and casting. Semi-integrated steelworks omit the reduction phase.

The Brazilian steel industry introduced a pioneering initiative in which charcoal is used as a reducing agent for iron ore in blast furnaces in order to reduce the carbon footprint associated with steel production. A reduction in greenhouse gas emissions due to the planting of forests is a feature that sets Brazil apart in relation to other steel producing countries.

Approximately 11% of Brazilian steel is produced using charcoal as a reducing agent in blast furnaces. Due to charcoal’s mechanical properties, in particular its friability, its use is only possible in smaller blast furnaces and it relies on the availability of areas for the planting of forests within an economical radius in order to supply industrial plants.

In Brazil, the integrated steelmaking route represents more than 80% of total steel production.

In semi-integrated steelmaking routes, the reduction phase is not carried out. Steel manufacturing is carried out through the fusion of a metal charge, which consists of steel scrap, pig iron and/or sponge iron in electric furnaces.

Once the steel is made, its life cycle is infinite, without presenting a loss in quality. The use of steel scrap not only allows for a reduction in the consumption of non-renewable natural resources but also a reduction in greenhouse gases generated during the production phase (production of pig iron). The production of steel using the semi-integrated route directly depends on the availability of scrap and this in turn is directly related to steel consumption in Brazil.

Processo de produção do aço

Production stages

Charge preparation

In order to optimize yield, the iron ore and coal are prepared in advance before being brought to the blast furnace. The iron ore must be agglomerated through means of sintering or pelletization. In the case of preparation with coal, it is necessary to remove volatile compounds by heating it in ovens (coking plants) in order to obtain coke.

Reduction

Reduction is the stage in which iron oxide (iron ore) is reduced to metallic iron in the blast furnace using special linings (refractory linings) capable of withstanding elevated temperatures (more than 1200 °C) during high heating. The materials charged in the blast furnace are transformed into pig iron, slag, and blast furnace gases. While the pig iron is used in steel production, the co-products resulting from this stage are reused. Slag is primarily reused in the cement industry. Blast furnace gases are used in energy generation.

Refining

After the carbon content is adjusted and impurities have been removed, the pig iron is brought to an oxygen furnace in the plants in order to obtain steel. In the case of semiintegrated steel plants, the metal charge (scrap, pig iron and/or sponge iron) directly feed the electric arc furnaces in order to be fused.

Casting

There are two different casting processes available: continuous and conventional. Continuous casting is the process most commonly used around the world. In this process, steel is poured in the steel plant to be cast in continuous casting machines and molded in the form of semi-finished products such as steel plates, blooms, and billets

There are two different casting processes available: continuous and conventional. Continuous casting is the process most commonly used around the world. In this process, steel is poured in the steel plant to be cast in continuous casting machines and molded in the form of semi-finished products such as steel plates, blooms, and billets

Rolling

Rolling is one of the final stages in the steelmaking process. In this stage, semi-finished products are mechanically processed in order to be transformed into steel products such as steel sheets, slabs, bars, coils, concrete reinforcing bars, wire rods and seamless steel tubes, among other products.

Classifications of Steel

There is a wide variety of forms and types of steel product that are classified according to their chemical composition and processing with regards to their final application.

With regards to chemical composition, steel can be classified into: carbon steel and specially/alloy steel.

Carbon Steel

Carbon steel is the most commonly produced and used type of steel. They are steels with a low alloy content, with a widely defined range of chemical compositions

Special/Alloy Steel

Alloy steel or special steel have a high carbon content and their chemical composition is defined through rigid specifications. Special steel includes mechanical construction steel, stainless steel, and tool steel. This type of steel contains, in addition to iron alloys and carbon, significant proportions of other elements that capable of altering its chemical and/ or mechanical properties. The main elements that are added to this steel are: aluminum (Al), manganese (Mn), nickel (Ni), chromium (Cr), molybdenum (Mo), vanadium (V), silicon (Si), cobalt (Co) and tungsten (W), among others.

The format and type of steel products can be classified into: semi-finished, flat products, and long products.

Semi-finished products

Products originating from the continuous casting process or rolling, in the form of slabs, blooms and billets, destined for subsequent processing through rolling or hot forging.

Flat Steel Products

Steel products that result from the rolling process with a width that is greater than its thickness to an extreme degree and that are commercialized in the form of steel sheets and coils of carbon and special steel.

Long Steel Products

Steel products that result from the rolling process with transversal sections that have a polygon shape and a width that is greater than the largest dimension along its straight section to an extreme degree. Long steel products are made from carbon and special steel and include concrete reinforcing bars, wire rods, bars, profiles, seamless steel tubing, and drawn steel.

 

BRAZIL STEEL INSTITUTE

CORPORATE INFORMATION

05

THE INSTITUTE

BRAZIL STEEL

ABOUT BRAZIL STEEL INSTITUTE

Coordination and support for the steel industry

A non-profit entity representing steel producers in Brazil, the Brazil Steel Institute was founded in 1963 as Instituto Brasileiro de Siderurgia (The Brazilian Steelmaking Institute). Throughout its history, Brazil Steel Institute has witnessed the steel industry face constantly changing scenarios and acted to promote its competitiveness and sustainability.

The Brazilian steel producing sector is made up of 12 business groups that are responsible for the operation of 31 steel mills. Brazil Steel Institute is the official source for data and statistics on the sector. Each month, it publishes data and production analyses, as well as coordinates the standardization of steel products and develops programs and policies in support of the industry.

The Brazil Steel Institute also carries out studies and research related to production and new applications for steel products, equipment and technology, raw materials and energy, the environment and work relationships. It is a permanent actor among organs and public and private entities in Brazil and overseas.

Working under the direction of Brazil Steel Institute, three entities provide incentives for the use of steel and its regulation: CBCA, which focuses on the use of steel in civil construction, CB-28, which develops standards programs for steel products, and CCABrasil, which develops sustainable alternatives, seeking to preserve non-renewable resources and provide support for development in Brazil.

Centro Brasileiro da Construção em Aço (Brazilian Center for Steel Construction - CBCA), which is managed by Brazil Steel Institute, has been working towards promoting and expanding industrialized steel construction in the national marketplace. Its work consists of action for disseminating, promoting, and standardizing quality, as well as developing technical material and workforce training.

Access CBCA Website

The Brazilian Steel Committee (ABNT/CB-28) was formed in 1996 under the scope of the ABNT – Brazilian Technical Standards Association and relies on technical and financial support from Brazil Steel Institute. CB-28 is responsible for managing Brazilian technical standards for steel and steel products. Participation in the Committee is voluntary and open to all entities interested in sharing their technical knowledge in order to optimize steel production standards and keep them up to date.

Centro de Coprodutos Aço Brasil (CCABrasil Sustainable Solutions) was formed in 2010 with support from associates and external collaborators. Its objective is to improve the reuse of co-products in the steel industry. In order to achieve this objective, CCA Brasil seeks to promote new alternatives and optimize existing practices in order to meet the needs of consumers of these materials, in a manner that provides a high degree of technical quality and sustainability.

CORPORATE INFORMATION

Brazil Steel Institute

Rua do Mercado, 11, 18º andar – Centro
Rio de Janeiro – RJ / CEP: 20.010-120
Tel: (21) 3445-6300 E-mail: acobrasil@acobrasil.org.br
Site: www.acobrasil.org.br

Chairman of Board of Directors

Marcos Eduardo Faraco Wahrhaftig (Gerdau)

Board Members

Alexandre Barcelos (ArcelorMittal Brasil)
Alexandre Lyra (Vallourec)
André Johannpeter (Gerdau)
Armin Wuzella (Villares Metals)
Benjamin Mário Baptista Filho (ArcelorMittal Brasil)
Clayton Labes (Sinobras)
Fábio Spina (Gerdau)
Frederico Ayres (Aperam)
Gustavo Werneck (Gerdau)
Jefferson de Paula (ArcelorMittal Aços Longos Latam e Mineração Brasil)
Marcelo Botelho (Companhia Siderúrgica do Pecém)
Marcelo Chara (Ternium Brasil)
Marcelo Marino (ArcelorMittal Brasil)
Marcos Faraco (Gerdau Aços Brasil)
Mario Galli (Ternium Brasil)
Miguel Homes (Usiminas
Sergio Leite de Andrade (Usiminas)
Silvia Nascimento (Aço Verde do Brasil)

Executive President

Marco Polo de Mello Lopes

Directors

Maria Cristina Yuan
Débora Oliveira
Mônica Aguiar

Credits

Special thanks

We wish to extend our gratitude all of the collaborators at associated companies that contributed to the production of this edition of the Brazil Steel Institute’s Sustainability Report. The agility, quality, and transparency of the information provided were essential to compiling the report.

Coordination

Brazil Steel Institute

Content

Brazil Steel Institute’s technical team

Graphic design

Prod

Editing and review

RPM Comunicação