The US government is threatening to reduce its fourth quarter quota for Brazil’s semi-finished steel product exports, according to the Brazilian steel association (IABr). The quota for the period stands at about 350,000 mt. The US is also considering bringing back the 25 percent tariff on Brazilian semi-finished imports, SteelOrbis understands.
Currently operating at 48.5 percent of its total capacity, Brazil’s steel sector expects the resumption of its domestic market to occur gradually. The IABr stated that infrastructure projects and civil construction are the main drivers of consumption of steel products, while a slower recovery has been observed in other consumer segments, such as the automotive sector. The association expects Brazilian crude steel production to fall by 13.4 percent this year and domestic sales to fall by 12 percent, compared with 2019.
According to the IABr figures, Brazilian crude steel output in the first half this year fell by 17.9 percent year on year to 14.21 million mt. Domestic steel sales in the given period totaled 8.3 million mt, falling by 10.5 percent year on year. Apparent steel consumption in the January-June period came to 9.3 million mt, down by 10.5 percent year on year. Brazilian exports of steel in the given period totaled 6.15 million mt, falling by 8.1 percent year on year.