Brazil's steel imports hit 74% of quotas by Jan 2025, new restrictions likely
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Update time : 2024-12-04 18:43:15
Brazil’s steel importers are swiftly approaching their quota limits for the period from October 1, 2024, to January 31, 2025.
As of November 25, 74% of the total 529,113 tons of steel quotas have already been used. This surge in imports, particularly in galvanized and cold-rolled sheet products, highlighted a significant demand for these materials in Brazil.
The Brazilian government, through the foreign trade department Secex, set import quotas with a 12.5% duty for imports within the limits. However, exceeding these quotas will result in a 25% duty.
Products such as galvanized sheets have already seen 90% of their quotas used, while cold-rolled flat products have reached 66%. These figures suggested an increasing reliance on foreign steel, especially for products in high demand.
To protect local steelmakers from an influx of cheap foreign steel, Brazil introduced import quotas in the spring of 2024.
Analysts predicted that the current safeguards, including higher duties, may not be enough to curb imports. As a result, Brazil is expected to implement additional restrictions to balance the market and support its domestic industry.
