Domestic steel sales performance reflected the stagnant economy in 2003: 15.4 million tons, representing a decline of 2.6% compared to the previous year’s 15.8 million tons.
      Despite this, the Brazilian steel sector performed well. Domestic production of crude steel in 2003 reached a record 31.1 million tons, 5.2% higher than in 2002. Flat steel production grew 10.7% to 21 million tons during the year.
      In contrast, international markets were strong in 2003 and Brazilian steel exports reached a record 13 million tons (11.1% growth over 2002). Imports fell 18.2% (550,000 tons compared to 672,000 tons in 2002). In U.S. dollar terms, exports

generated US$ 3.9 billion in revenues, 34.5% higher than the previous year.
      Asia was the main export market for Brazilian steel during the year, accounting for 42% of the 13 million tons, followed by Latin America (21.3%), North America – excluding Mexico (19%), Europe (12.5%), Africa (3.1%), Middle East (1.8%) and Oceania (0.3%).
      The significant flow of Brazilian steel to Asia was mainly a result of China’s exponential growth in steel consumption. China produced 220 million tons of steel last year – almost one quarter of the world’s total – and imported 28.5 million tons, equivalent to Brazil’s total overall production.