Witnesses said that a flare or firework lit by a band may have started the fire.
Police Major Cleberson Braida Bastianello said officials counted 232 bodies brought for identification to a gymnasium in the city of Santa Maria, at the southern tip of Brazil.
Bastianello said that lowered the toll from 245 earlier believed killed.
Television images showed smoke pouring out of the Kiss nightclub as shirtless, young male party-goers joined firefighters in wielding axes and sledgehammers, pounding at windows and walls to break through to those trapped inside. Some escapees carried injured and burned friends away in their arms.
“There was so much smoke and fire, it was complete panic and it took a long time for people to get out, there were so many dead,” survivor Luana Santos Silva told the Globo TV network.
Silva added that firefighters and ambulances responded quickly after the fire broke out, but that it spread too fast.
Another survivor Michele Pereira told the Folha de S Paulo newspaper that the fire broke out after members of the band lit flares.
“The band that was onstage began to use flares and, suddenly, they stopped the show and pointed them upward. At that point the ceiling caught fire. It was really weak but in a matter of seconds it spread,” she said.
Most of the dead apparently suffocated, according to Dr Paulo Afonso Beltrame, a professor at the medical school of the Federal University of Santa Maria who raced to the Caridade Hospital to help victims.
“Large amounts of toxic smoke quickly filled the room and I would say that at least 90% of the victims died of asphyxiation,” he said.
“The toxic smoke made people lose their sense of direction so they were unable to find their way to the exit. At least 50 bodies were found inside a bathroom. Apparently they confused the bathroom door with the exit door.”
“In the hospital I saw desperate friends and relatives walking and running down the corridors looking for information. It was one of the saddest scenes I have ever witnessed,” he added.
Beltrame also said he was told the club was filled past its capacity during a party for students.
Rodrigo Moura, a security guard at the club, said it was at its maximum capacity of between 1,000 and 2,000
The fire led president Dilma Roussef to cancel a series of meetings at a summit of Latin American and European leaders in Chile’s capital of Santiago, and was headed to Santa Maria, according to the Brazilian for
“Sad Sunday”, tweeted Tarso Genro, the governor of the southern state of Rio Grande do Sul.
Santa Maria is a major university city with a population of around a quarter of a million.