As Brazilian steel producers seek increased steel sales, local steelmakers are looking at the export market as an alternative to increase the use of its steel industry capacity.
“The first alternative is not to re-elect Trump,” said Benjamin Baptista Filho, CEO at ArcelorMittal Brazil during the IABr Brazil Steel Congress on Friday. “If such restrictions continue, this should be a great concern.”
Baptista Filho’s comments came just before Donald Trump reduced steel import quotas for semi-finished steel from Brazil.
Brazil's steel industry is currently operating at 60 percent its capacity. “To return to an 80 percent capacity, we need to export. Brazil has always been a big exporter of quality steel products,” he said.
Among other challenges, Baptista Filho urged the Brazilian government help to get back the Reintegra “pay back” export program. The Reintegra used to pay back steelmakers 2 percent of their export revenue, but the benefit has reduced significantly.
“We need to advance with all reforms, to reduce costs outside our borders, and we need the government’s help to get tax credits through Reintegra. And we need to have a presence of the Brazilian government in terms of commercial defense to protect domestic production,” Baptista Filho said.