With the current global economic downturn, thermal expansion seamless steel pipe market demand has greatly shrank, the proportion of iron and steel production accounted for more than 70% of South America, and it continues to expand its production this year.

Steel experts think that although Brazil crude steel production grows continuously for months, its domestic steel demand has declined obviously, at the same time, foreign steel inlet pressure rose sharply recently, making Brazil "stressed out" of the thermal expansion seamless steel pipe market.

Brazil is just like most of the world steel market, lack demand and excess supply. In order to solve or alleviate the contradiction between supply and demand of domestic steel, steel mills and traders in Brazil intensified the efforts on steel exports.

According to the Brazilian iron and steel association statistics, from January to February the 2015, the thermal expansion seamless steel pipe in Brazil exports increased significantly than the same period last year, exports totaled 1.76 million tons, with a growth rate as high as 22.7%.

Brazilian iron and steel association statistics, according to data from the first two months of this year Brazil steel export value of $1.09 billion (average price is $619 / ton), compared with the same period last year, the growth rate of only 6.1%, less than a third of the growth rate of steel exports.

Brazilian iron and steel association statistics show that 2015 years ago, two months, Brazilian steel imports amounted to 696000 tons, more than twenty percent, higher than the same period last year growth rate of 24%, more than the steel export growth.

The Brazilian market imbalance between supply and demand of thermal expansion seamless steel pipe is not only from domestic steel mill steel production growth and decline in steel demand, also from the pressure of the sharp rise in the foreign steel mills steel imports.

The world steel association, according to statistics released on March 20, the top 10 countries of the year of 2014 accumulative total crude steel production respectively are China, Japan, the United States, India, South Korea, Russia, Germany, Turkey, Brazil and Ukraine, among of which, Brazil ranked ninth.

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