Mumbai: Brazil is pinning hopes on CSN's successful bid to acquire UK-based Corus to overtake India in the global steel space, reports quoting steel industry sources in Brazil said.

While CSN's acquisition of Corus will not only dash Tata Steel's hopes of becoming the world's fifth largest steelmaker, but the Latin American nation also expects to outdo both India and Russia if CSN succeeds in the deal with Corus, Brazilian Steel Institute (IBS) president Luis Andr Rico Vicente was quoted in a report by Steel Business Briefing.

India and Brazil currently produce around 34-38 million tonnes of steel annually and are among the world's top ten producers. China, on the other hand, is the world's largest steel producer with annual production of about 350 million tonnes. Russia has total steel production of about 54 million tonnes per year.

"China is out of reach, of course, but with an eventual acquisition of Corus by CSN, and with international expansions by other Brazilian companies like Gerdau Group, our country would have a good chance of passing India and Russia in the current worldwide consolidation of the industry," he said.

Brazil's steel output is expected to grow by over 30 per cent in the next four years.

India, with availability of domestic iron ore, an experienced cadre of metallurgical engineers, cheap labour and a vibrant class of steel entrepreneurs and executives, could become the next China in the steel sector by 2011.