Beset by problems at home, Brazilian steel looks out at a hard world

SAO PAULO, Aug 17 (Reuters): Whichever way Brazil's steel industry looks it sees pain.

At home, the economy is on the brink of recession and demand for the world's most used metal is on the wane. Abroad, Brazilian exports are hampered by a strong currency and global production overcapacity.

What is needed, steel executives say, is widespread reform, including higher infrastructure spending, lower taxes, and a weaker Brazilian real .

But although steel companies talk urgently of a state of crisis, and many analysts and economists agree, little change can be expected soon with a presidential election just two months away.