ArcelorMittal Brazil is planning to reduce its rolled steel production by 1.3 million tons in 2023 in response to a significant surge in rolled steel imports into the country. This reduction will encompass all divisions of the company, with the Tubarao plant, which is the largest steel producer in the country, scaling back slab production by approximately 20% and flat products by 10%. The decision to make these cuts stems from the substantial influx of steel imports into Brazil and the reluctance of foreign trade authorities to impose a 25% import duty on all steel products.
Currently, the duty rate stands at 9.6-12.8%, which the Brazilian steel industry deems insufficient to address the influx of competitively priced Russian and Chinese steel. Gerdau has also reported suspending production at the Maracanaú steel plant in Ceara due to oversaturation of the local market with imported goods from Russia and China. Steel production in Brazil for August 2023 decreased by 5.9% compared to August 2022, resulting in an output of 2.7 million tons.
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