Because the Brazilian government decided not to take an active role in today’s meeting with the US Trade Representative (USTR), each sector is expected to present its own case. Executives from agriculture, machinery, and other industries are expected to attend, along with representatives of the pig iron industry through Sindifer, the association for independent pig iron producers in the southeastern state of Minas Gerais.
Brazilian government representatives will attend as observers.
A Sindifer source told SteelOrbis that the association will argue that US steelmakers and foundries depend on Brazilian pig iron and would be harmed if the US imposes a potential 37.5 percent import tax on the product.
According to the source, there is no short or medium term substitute for Brazilian pig iron. The product is made to order for the steel industry and has near-zero net greenhouse gas emissions because its blast furnaces use charcoal instead of mineral coal.
When charcoal is used as the reducing agent, blast furnace emissions are offset by CO2 captured by the next generation of trees.
Until recently, pig iron was listed as an exception to higher import tariffs at the request of US consumers, but it was removed from the exceptions in the current round of negotiations.