Far-right Brazilian presidential candidate Jair Bolsonaro from the PSL party will advance to the second round of the Brazilian presidential election on Oct. 24, along with left-wing candidate Fernando Haddad, from the Workers Party (PT). Bolsonaro won 46 percent of the valid votes, while Haddad one 29.3 percent of the vote.
The two candidates have different views on economics, fiscal policy and public spending.
Bolsonaro is pro-privatization of major national industries, and his advancement to the second round of the election helped increase market sentiment. The Brazilian Real (BRL) immediately appreciated over the USD one day after the Oct. 7 preliminary election. Bolsonaro has also been blamed for raising hatred and an “anti-left” sentiment in Brazil.
Haddad defends a stronger state that can deliver on social reforms and infrastructure to boost economy. He is backed by former president Luis Inacio Lula da Silva, who is currently serving a 12-year jail sentence for corruption and money laundering. Lula tried to run for president, but his candidacy was rejected by the electoral court, TSE.
It remains unclear how each candidate’s policies may help or harm the local steel industry, which has started to rebound after years of downturn. Brazil’s steel sector demands an increase in an existing payback exports program, which would make Brazilian steel exports more competitive in light of limitations to Brazilian semi-finished steel exports to the US.