Jorge Oliveira, president of ArcelorMittal Brazil and CEO of ArcelorMittal Flat Steel LATAM, has emphasized that a strong domestic steel industry is critical for Brazil’s industrial sovereignty, economic growth, and long-term competitiveness, according to Brazilian media reports.
He noted that steel plays a central role in supporting key sectors such as automotive, infrastructure, energy, and construction.
Deindustrialization trends raise concern
Brazil, with installed crude steel capacity of around 51 million mt, remains the largest steel producer in Latin America.
However, Oliveira highlighted a structural decline in manufacturing, with its share of GDP falling from approximately 36 percent in 1985 to around 11-12 percent today, according to Brazilian Institute of Geography and Statistics (IBGE) data.
Import pressure and global overcapacity
Rising imports are adding to the challenges facing the domestic industry.
Global steel overcapacity currently exceeds 600 million mt and is expected to surpass 700 million mt by 2027, increasing competitive pressure. Oliveira stated that subsidized imports are entering Brazil under conditions of unfair competition, contributing to high levels of idle capacity.
The ArcelorMittal executive stressed that protecting the national steel sector is essential not only for safeguarding jobs and income, but also for maintaining technological capabilities and supply chain independence. This is particularly important in an environment of growing geopolitical uncertainty.
Sustainability advantages but structural challenges remain
Despite these pressures, Brazil’s steel industry benefits from a relatively clean energy mix and high scrap usage, supporting lower-emission production. However, Oliveira pointed to structural inefficiencies, often referred to as the “Brazil Cost,” as a key obstacle to competitiveness.
He called for comprehensive reforms and stronger industrial policies to address cost challenges and reverse deindustrialization trends. According to Oliveira, strengthening the steel sector will be essential to ensuring Brazil’s long-term industrial resilience and economic development.
