As of December 17, the 445,469 mt of quotas of steel products allowed for import at regular steel import rates had a total utilization of 71 percent, against 54 percent on November 19, according to the Brazilian foreign trade authority, Siscomex.
Such quotas were approved on October 24 and are valid for utilization until February 23, 2026.
The overall volume of the new quotas matches that of the earlier quotas.
The utilization by product was as follows:
- Plates in coils: 12 percent from 1,284 mt, unchanged in one month.
- HRC: 24 percent from 36,120 mt, against 7 percent previously.
- CRC: 68 percent from 84,203 mt, against 44 percent previously.
- Zinc Coated: 76 percent from 144,285 mt, against 60 percent previously.
- Galvalume: 88 percent from 147,038 mt, against 75 percent previously
- Wire rod: 30 percent from 32,534 mt, against 14 percent previously.
Volumes exceeding the quotas are subject to a 25 percent import tax, which is still expected to be increased to 50 percent, according to the local press.
Local steel producers remain arguing that current measures do not sufficiently curb steel imports, which they say are often dumped. Many of these imports enter through Manaus's tax-free zone without paying import taxes, even when sent to other states.
Most CEOs of Brazilian steel companies report that the primary challenge facing the sector is steel imports at dumped prices, particularly from China.
