The permanent scenario of Brazilian dependence
of imported steel products began to change in the 40s,
upon Getúlio Vargas becoming President of Brazil.
One of his goals was to promote the growth and nationalization
of the country’s base industry.
One of the great examples of such effort
was the opening, in 1946, of the National Steel Company
(CSN) in the city of Volta Redonda, state of Rio de Janeiro,
which started then producing metallurgic coke. In the
same year, the blast furnaces and steelshop came into
operation. Lamination started in 1948 and it marked the
beginning of Brazilian self-sufficiency of steel and iron.
Founded on funds from American financings and Governmental
funds, the sector’s state-controlled giant was born
to fill an economic blank.
A new cycle of growth for the Brazilian steel industry
began in 1950, when the company was fully operational
in all its lines. Brazilian crude steel output reached
788,000 tonnes and a time of continuous growth in the
production of steel was beginning. Ten years late, production
had tripled, and after another 10 years, in 1970, 5.5
million tonnes were delivered to the market.
Such supply stimulated the expansion
of the economy, bringing new and increasing demands for
the mills. Another consequence was the sharp increase
of steel imports. This scenario originated, in 1971, the
National Plan for the Steel Industry, aiming at triggering
a new expansion cycle and quadrupling production. State-controlled
companies held a larger responsibility in this target,
since they accounted then for 70% of the country’s
output ad held exclusivity in flat products. Part of the
product was meant for exportation.
In 1973, the first steel-producing integrated
mill using the direct reduction of iron ore based on natural
gas, the Usina Siderúrgica da Bahia (Usiba), started
its operations. In the same year, the Siderurgia Brasileira
S.A (Siderbrás), was created. Ten years later,
the Companhia Siderúrgica de Tubarão (CST)
started operating. In 1986, Açominas started its
operations in Ouro Branco (MG).
During the 80s, the domestic market
was shrinking and the alternative was to turn to overseas
markets. All of a sudden, Brazil went from large importer
to exporter of steel, with no tradition in the business.
But the crisis afflicting the Brazilian industry was worldwide.
All over the globe, markets shut closed with importation-restrictive
measures. At that time, terms such as voluntary restrictions,
surtaxes, anti-dumping, compensatory rights and safeguards
started to appear in the newspapers.
