Steel giants take interest in Brazil
Steel companies worldwide are turning their attention to Brazil, due to the presence of large deposits of cheap iron ore.
Two of the world’s biggest steel producers, ArcelorMittal and Tata Steel, are reported to have been looking into iron ore exploration opportunities in the country by Reuters.
Tata has acknowledged that it has been in talks with local producer Vale over a possible collaboration in the northern Brazilian state of Para, where Vale has a huge mine at Carajas.
Investment in the steel industry by these international giants could give a considerable boost to the Brazilian economy, creating thousands of jobs and promoting infrastructure development.
"The steelmakers are descending the chain of value … when their eyes land on the miners’ lofty margins, they begin thinking that these profits that the miners are getting could be internalised," suggested Claudio Nassur of Cypress Associates.
Sinosteel has also expressed an interest in mineral exploration opportunities in Brazil, including iron ore, nickel and manganese.
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