Davis Index: Market Intelligence for the Global Metals and Recycled Materials Markets

Brazil’s car sales could fall by 40pc this year due to COVID-19 related suspension of automotive manufacturing plant operations.


Car sales could reach 1.67mn units this year, down from 2.78mn vehicles sold in 2019, according to the country’s Association of Motor Vehicle Manufacturers (Anfavea).


Brazil’s car production dropped by 84.4pc to 43,100 cars in May compared to the same month last year, due to COVID-19 related shutdowns in the vehicle manufacturing sector. The country’s car exports also decreased by 90.8pc in May compared to the same month in 2019, while car sales increased by 23.3pc in the same month, Anfavea said without disclosing the sales or exports volumes.


Some carmakers in Brazil will resume operations this month after suspending activities at the end of March this year. Others like Toyota and GM Brazil, which temporarily shut down auto production in April will resume production after June 22.


Auto shutdowns affect steel demand

The suspension of vehicle manufacturing in the South American country has resulted in lower demand for crude steel. Brazil’s crude steel production dropped by 39pc to 1.81mn mt in April, compared to the same month last year, according to the Brazilian Steel Institute (Aço Brasil). Crude steel production in April last year reached 2.97mn mt.

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