Brazil steel output up in May, record local sales

RIO DE JANEIRO, June 19 (Reuters) - Brazil's steel output rose nearly 3 percent in May from the same month a year ago and domestic sales hit a record, boosted by demand from the booming automobile and construction sectors, an industry group said on Thursday.

Raw steel output totaled 3 million tonnes in May, up from 2.9 million tonnes in the preceding month, the Brazilian Steel Institute said in a report.

Rolled steel sales in Brazil soared 13 percent from May 2007 to a record 1.9 million tonnes. Rolled steel output rose 1.2 percent from a year ago to over 2.2 million tonnes.

Exports of finished products slumped 25.6 percent from a year earlier, but sales of semi-finished products abroad rose 4.7 percent thanks to increased capacity, the IBS said without providing export figures.

Brazil is the world's fifth-biggest net steel exporter, according to the group.

Brazil's economic growth, rising incomes and growing long-term financing have spurred demand for housing and durable goods like automobiles and home appliances.

Pig iron production rose 4.6 percent in May from a year ago to 3.1 million tonnes.

Over the past 12 months, Brazil churned out about 34.7 million tonnes of raw steel, 26.4 million tonnes of rolled steel and 36.6 million tonnes of pig iron, the IBS said. (Reporting by Andrei Khalip; editing by Jim Marshall)