Brazil's secretariat of foreign trade Secex opted not to impose provisional duties on Chinese hot-rolled coil (HRC) despite finding evidence of dumping practices.
The investigation covers 25 HRC products and is due to conclude on 20 July, when the secretariat will decide on permanent duties. Brazil can still delay the ruling until December because of an 18-month extension to the investigation, which began in June 2025.
Chinese suppliers sold HRC at below-market prices, causing injury to domestic producers, Secex said on 24 December. The investigation used the US market as the reference to determine the normal value for import prices.
Preliminary calculations show dumping margins for major Chinese mills. The investigation committee assigned Baosteel with a margin of 46pc, while Hebei Yanshan reached 51pc.
These figures undercut domestic prices, pressuring margins and weakening financial indicators for Brazilian steelmakers including Gerdau, Usiminas and CSN, Secex said.
Imports weighed on domestic prices, squeezing margins throughout 2024-2025, Brazilian producers said in their latest earning calls. Argus-assessed domestic HRC prices fell by 11pc year to date.
Argus assessed the Brazil HRC cfr at $515-550/metric tonne(t) on 26 December, while the ex-works assessment stood at R3,600-3,800/t ($652.50-688.70/t).
Import volumes increase
Secex also compared two-year periods to assess the impact of seaborne imports on the Brazilian market from 2019 to 2024.
Chinese HRC shipments to Brazil jumped by about 26 times between the 2019-2020 and 2023-2024 periods, according to Secex, reflecting a 2,636pc surge in import volumes.
Brazil imported 678,619t of HRC year to date through November, according to industry chamber Instituto Aco Brasil. Chinese steel under scrutiny accounted for 452,900t of the total.
The probe into Chinese HRC is the largest on imported flat steel. Brazil also has investigations into Chinese cold-rolled coils (CRC), pre-painted and coated steel, all of which are set to conclude by March.
