Brazil is fast approaching its steel import quota limits for the period between October 1, 2024 and January 31, 2025, with most of the imports for the period until January 2025 already used up. 74% of the 529,113 tons of steel import quota was filled as of November 25. High demand, especially for galvanized and cold-rolled sheets, has played a major role in the rapid increase in imports.
The Brazilian government imposes a 12.5% duty on imports through its foreign trade department Secex. However, it is said that this rate could rise to 25% if the quota is exceeded. Already 90% of the quota for galvanized sheets and 66% for cold-rolled flat products have been used. This shows Brazil's growing dependence on foreign imports, especially for these products.
Brazil introduced import quotas in the spring of 2024 to protect local steel producers from foreign steel producers. However, analysts believe that the current measures are not enough to limit imports. Therefore, Brazil is expected to impose additional import limitations to stabilize the market and protect domestic steel producers.
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