Brazilian steel association representatives met this week with president Jair Bolsonaro to discuss US Section 232 trade restrictions and measures Brazil can take to protect its industry against steel imports from South Korea and China.
The Brazilian steel sector asked Bolsonaro to request that US president Donald Trump review the existing quota imposed on Brazilian exports of steel to the US.
Other Brazilian ministers, including minister of economy, Paulo Guedes, and foreign relations, Ernesto Araujo, joined the meeting with IABr president, Marco Polo, and a few other unnamed IABr executives.
Bolsonaro reportedly called Trump at 4:50 pm Brazilian time to discuss the matter. They talked for about 30 minutes.
IABr president, Marco Polo, said the Brazilian steel industry is suffering from a sluggish domestic demand. He said exports also fell due to Covid-19, and the local steel industry is operating at 40 percent its capacity.
Neither Bolsonaro nor Lopes disclosed the content or the outcome of Bolsonaro’s conversation with Trump.
Polo said Brazil can’t “become prey” to China or South Korea, as they both account for 210 million mt out of a 395 million mt global steel glut.
“There has to be some emergency mechanism like a quota (for those two countries),” Polo said.