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Days after reporting its fourth quarter and year 2012 financial results on Mar 28, Companhia Siderurgica Nacional (SID - Free Report) , or CSN came out with its outlook for year 2013.

The Brazilian steel maker anticipates iron ore production to be roughly 29 million tons, very similar to the 2011 production figure. Its results are likely to get affected by lower shipments experienced in the first quarter 2013 due to a machine break down at Casa de Pedra mine.

Talking of steel, CSN anticipates sales in 2013 to be roughly 6.2 million tons, a rise of 7% over 5.8 million tons in 2012. Of the total, roughly 4.9 million tons or 79% sales are expected in the domestic market. Capital spending for steel would amount to R$400 million in 2013.

On a consolidated basis, capital spending in year 2013 is expected to be R$3.1 billion. CSN targets to spend roughly R$2.2 billion on expansion plans, including R$1 billion on Transnordestina Logística and R$660 million on cement. The rest R$900 million will be used as maintenance capex, including steel and mining.

In year 2012, CSN utilized roughly R$3,144.2 million including among others, R$984 million spent on Transnordestina Logística, R$381 million on expansion of Casa de Pedra mine and Itaguai Port, R$454 million on construction of the long steel plant.

CSN is a $6.8 billion steelmaker and is considered to be one of the best in Brazil. The stock currently holds a Zacks Rank #2 (Buy). Other stocks to watch out for in the industry are Gibraltar Industries, Inc. (ROCK - Free Report) and Shiloh Industries Inc. , each with a Zacks Rank #1 (Strong Buy) and Nippon Steel & Sumitomo Metal Corporation (NSSMY - Free Report) , with a Zacks Rank #2 (Buy).

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