According to Sergio Leite, VP of Strategy for Brazilian flats producer Usiminas, the company is considering the suspension of operations of its blast furnace number 1 of the Ipatinga plant, located in the southeastern state of Minas Gerais.
Leite was quoted by the newspaper Valor Econômico as saying that suspension could take place still in 2023, as domestic sales have declined due to increasing imports of steel products this year, chiefly from China and at dumped prices.
The announcement comes when Usiminas is preparing for the restart of its blast furnace number 3 of Ipatinga, which was idled in April 2023 for revamping, at costs estimated at $540 million.
Usiminas join voices with Gerdau and ArcelorMittal, asking the authorities to impose a 25 percent import tax for steel products, as an alternative to reduce the competitiveness of the imported products.
Meanwhile, representatives of 21 industrial sectors, consumers of steel products, declared opposition to the 25 percent import tax, claiming that a higher import tax would increase domestic prices and reduce the competitiveness of the domestic industry.