By Joao Lima
Feb. 25 (Bloomberg) -- Brazil's steel industry may have problems meeting domestic demand this year as there are no planned capacity increases, O Estado de S. Paulo said on its Web site, citing Christiano da Cunha Freire, president of the National Institute of Steel Distributors.
If flat-steel consumption increases 15 percent this year, demand will be close to the production capacity of 14 million tons, the Brazilian newspaper said. There may be supply problems in the second half, Freire said, according to Estado.
Imports will involve ``much higher'' costs due to the increase in prices and transportation, Estado said.
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