Brazilian Steel Importers Near Quota Limit for Early 2025
Date:2024-12-03View:224Tags:"316L plate",cold rolled stainless steel coil,nickel alloy bar
Brazilian steel importers have already utilized 74% of their allotted quotas for the period ending January 2025, with galvanized and cold-rolled sheets being the most actively imported products. The government may soon implement additional restrictions on rolled steel imports, as existing measures have been insufficient to curb foreign supply levels.
Import Quotas and Tariffs
According to the Brazilian Foreign Trade Agency (SECEX), the total import quota for steel products between October 1, 2024, and January 31, 2025, is 529,113 tons. Imports within the quota are subject to a 12.5% duty, while shipments exceeding the limit face a 25% tariff.
As of November 25, 2024, the quota utilization rates for various product categories are as follows:
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Heavy plates in coils: 6% (quota: 7,964 tons)
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Hot-rolled plates: 36% (quota: 54,030 tons)
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Cold-rolled flat products: 66% (quota: 100,559 tons)
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Galvanized sheet products: 90% (quota: 156,709 tons)
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Wire rod: 41% (quota: 52,976 tons)
Potential New Import Restrictions
Despite the quota system and increased tariffs, analysts suggest these measures will not significantly reduce import volumes to historical averages. As a result, Brazil is likely to introduce new import restriction policies.
Background on Quota System
In early 2024, the Brazilian government established import quotas for 11 steel product categories to protect domestic manufacturers from an influx of inexpensive foreign steel. The policy includes a 25% tariff on imports exceeding the quota for a 12-month period, compared to prior duties of 9% to 12.6%. Higher tariffs apply to products whose import volumes have risen by more than 30% compared to the 2020-2022 average.
This protective framework reflects Brazil's ongoing efforts to shield its steel industry from competitive pressures stemming from low-cost imports.