STEEL NEWS

The use of steel import quotas in Brazil is gradually increasing

According to price agency Argus, Brazilian importers had fulfilled nearly 264,000 metric tons of steel quotas by July 30, 4,000 tons more than a week earlier, according to the country’s foreign trade secretariat.

Quotas for pipe and coated steel performed somewhat better, while consumption of cold rolled and hot rolled steel remained at the previous week’s level.

Buyers can import up to 475,800 tons of 17 types of steel products at reduced rates of 9-13% from June to October.

Once the quota for each product reaches its threshold, all additional volumes are subject to a higher rate of 25%.

New import licences are issued under the same rules every four months when quota volumes are re-established.

Initially, buyers sought to secure deliveries before quota limits were reached, but progress has slowed as remaining volumes are delivered more slowly.

Brazil introduced a quota policy in June 2024 to contain a sharp increase in imports. This regime proved ineffective: imports reached a record 5.9 million tons that year.

Subsequently, the government extended the quota regime until June 2026, expanding its scope to include more steel products, and tightening conditions by reducing the volumes subject to tariff cuts.