Posted on 03 Dec 2024
Brazil may introduce new barriers to rolled steel imports, as current safeguards cannot reduce the level of supply from abroad. This is reported by SteelOrbis.
According to the Brazilian foreign trade agency SECEX, the total volume of quotas that can be used from October 1, 2024 to January 31, 2025 is 529.113 thousand tons. If the import volume falls within the quota amounts, an average import duty rate of 12.5% applies. In case of exceeding them, imports will be subject to a 25% duty.
Overall, as of November 25, importers have already used 74% of the allocated quotas.
As for the product groups, the utilization rate is as follows
According to analysts, the quota system and higher import duties will not be able to reduce the level of supplies from abroad to the historical average. This increases the likelihood that Brazil will introduce a new import restriction scheme.
In the spring of this year, the Brazilian government decided to introduce a system of import quotas for 11 types of steel products. This way, the country is strengthening the protection of local steelmakers amid an influx of cheap steel from abroad.
According to the decision of the state foreign trade authority, the increase in import tariffs to 25% for shipments exceeding the quota will be effective for 12 months for such products as rolled steel and pipes. Import duties at that time ranged from 9% to 12.6%. A higher tariff will be levied on products whose imports increased by more than 30% compared to the average for 2020-2022.
Source:GMK Center
