A study by the Brazilian ministry of finance said the imposition of definite antidumping (AD) duties over imports of Russian and Chinese hot rolled coil (HRC) would affect several Brazilian industrial sectors.
The ministry said the duties would negatively affect the major consumers of HRC in Brazil and the industrial chain, and would also raise the country’s inflation rate.
The nation’s finance ministry argued the automotive, auto parts and electronic sectors account for an important share of Brazil’s GDP, “more than the local steel industry.”
In September last year, the nation’s ministry of industry, foreign trade and services, MDIC, extended for up to six months ongoing investigations into the imports of Chinese HRC. A notice at the country’s official gazette on Monday said MDIC has initially found the existence of subsidies in the Chinese exports of HRC to Brazil, which are subject to AD duties.
The notice was published following a request by local producers Gerdau, ArcelorMittal Brazil and Companhia Siderurgica Nacional (CSN) on April 29, 2016. In August last year, Usiminas’ CEO, Sergio Leite, said the local steel industry expected Brazil to apply duties over the Chinese exports of HRC to Brazil.
A decision on whether the government will apply duties on imports of Russian and Chinese HRC should be made next week.