Increased imports of finished steel products, chiefly from China and at alleged dumping prices, are raising disputes in versions offered by the steel industry and by steel consumers.
In the past, Brazil was considered as having one of the highest domestic prices for finished steel products, but today the competition from imports has changed the scenario, with domestic prices reducing significantly the margins of the steel industry.
The authorities have recently approved the renewal of the system of quotas, whereby steel imports exceeding the allowed volume are subject to a 25 percent import tariff, a measure considered as not sufficient by the steel producers, due to flaws derived from imports via the duty free zone of Manaus, state of Amazonas, or via the state of Santa Catarina, exempted from the state tax, ICMS.
For their turn, steel consumers claim that their activities require the acquisition of raw materials at lower prices to gain competitiveness.
Squeezed between steel producers and consumers, the Brazilian government avoids radical measures against China, its main commercial partner.
During the first half of the year, Brazil imported 1.34 million mt of finished steel products from China, worth $859 million, compared respectively to 1.24 million mt and $880 million in the same period of 2024.
The 1.34 million mt imported from China represented about 13 percent of the domestic sales of finished steel products in the Brazilian domestic market during the first half of 2025.