In a recent discussion with analysts from Genial Investimentos, Marcelo Chara, the CEO of Brazilian steelmaker Usiminas, provided insights into the company’s plans to enhance its blast furnace operations. Among the key objectives is to improve the efficiency of its blast furnaces, reduce the cost of goods sold per metric ton, and modernize production processes. These measures align with Usiminas’ strategy to optimize operations and lower costs, helping the company maintain its competitiveness in the global steel market.
One of the most notable goals for Usiminas involves reducing the fuel rate per metric ton of pig iron produced. Currently, the company consumes about 520 kg of fuel per metric ton of pig iron. However, Chara outlined that the company aims to lower this figure to 500 kg per metric ton, which would align Usiminas with some of the world’s most advanced blast furnace operations. This represents a significant improvement in fuel efficiency, bringing the company closer to international standards. Before the recent revamping of blast furnace number 3, the fuel rate stood even higher, at 600 kg per metric ton, highlighting the progress already made.
Usiminas is implementing several strategies to achieve these efficiency gains. One of the most important steps is the shift from traditional coke to pulverized coal injection (PCI) as a fuel source. PCI is a more cost-effective alternative, averaging 58% less expensive than coke. Although PCI requires a 12% higher volume to achieve the same energy output as coke, its lower cost makes it an attractive substitute for Usiminas. The transition to PCI is already underway, with a new PCI plant under construction. The plant is expected to be operational by 2025, further enhancing the company’s fuel efficiency and cost-saving initiatives.
Another significant project underway at Usiminas is the revamping of its coke plant number 2. Set to be completed in the second half of 2026, the upgrade aims to increase the company’s self-sufficiency in coke production from the current 30% to 45%. This increase in coke production will not only reduce Usiminas’ reliance on external suppliers but also lower overall production costs. By improving logistics and operational reliability, the revamped coke plant will be a key factor in enhancing the company’s competitiveness and supporting its long-term growth strategy.
The improvements to the blast furnace operations are part of a broader effort by Usiminas to optimize its production processes and reduce operational costs. The company has been working closely with its main shareholder, Ternium, to implement global best practices and technological advancements in its operations. These efforts include benchmarking against leading steel producers worldwide, ensuring that Usiminas remains at the forefront of the industry in terms of efficiency and sustainability.
In addition to fuel efficiency and cost reduction, Usiminas is focused on enhancing the overall sustainability of its operations. The company is committed to reducing its carbon footprint and improving energy efficiency across all of its production processes. The transition to PCI, for example, not only reduces fuel costs but also contributes to lower carbon emissions, as PCI is considered a cleaner alternative to coke. Usiminas has also been investing in modernizing its steelmaking facilities, with a focus on integrating cleaner technologies and improving environmental performance.
Chara’s remarks also indicated that Usiminas is focused on strengthening its operational reliability and reducing risks associated with production disruptions. The ongoing improvements to the company’s coke plant and blast furnace operations are part of a broader effort to ensure that Usiminas can meet growing demand for steel while maintaining high levels of efficiency. By optimizing production processes and cutting costs, the company aims to remain competitive in an increasingly challenging global steel market.
The future of Usiminas looks promising, with these strategic investments and operational improvements positioning the company for continued success. As the steel industry faces ongoing challenges, including fluctuating raw material prices, environmental regulations, and global competition, Usiminas is taking proactive steps to stay ahead of the curve. With an eye on global benchmarks, fuel efficiency, and cost-saving innovations, Usiminas is setting itself up to thrive in an evolving steel market, ensuring long-term sustainability and profitability.
