ArcelorMittal could invest USD 1 billion in a new steel rolling mill in Brazil to supply the country’s growing flat steel products market. The project would add 3 million metric tons of hot rolling capacity per year at ArcelorMittal’s Tubarao works in southeast Brazil. The company is considering converting Tubarao to a 100% rolled steel mill for the domestic market, and cease its export of slabs. As a result of higher production costs in Brazil, it is no longer cost effective to produce slabs for an export market where prices are volatile. Currently, the Tubarao works sends part of its rolled steel output to ArcelorMittal’s Vega do Sul steel galvanizing and cold rolling works in south Brazil, where a USD 300 million expansion is also planned.