The Brazilian Foreign Trade Chamber (Camex) established import quotas for 11 steel products, including hot dipped galvanized products (HDG), CRC, plates in coils, HRC, wire rod and welded steel pipes, while seamless steel pipes will stay under evaluation.
When the import volume of such products exceeds the quotas, a 25 percent import tax will be applied, replacing the current 10.8 percent tax.
The decision is expected to be in force during the next 30 days and will be valid for 12 months.
The quotas will be implemented on products when imports exceed by 30 percent the average import volume between 2020 and 2022.
According to sources, the limit of quotas for most of the products is expected to be exceeded still during the first half of the year.
The decision by Camex is in line with the long running request of the Brazilian steel industry and follows a similar action that was already implemented by Mexico, Europe, the US and Chile, among other countries, as an alternative to face the competition from imports at alleged dumping prices, chiefly from China.