News
15/07/25
Brazil fills coated steel quotas quickly
Brazil fills coated steel quotas quickly
Sao Paulo, 15 July (Argus) — Importers filled 60pc of Brazil's coated steel
import quotas in the first 15 days following the imposition of duties in late
June, according to foreign trade secretariat data. Brazil's quota system
includes 17 steel products under a 25pc tariff regime, three of which are flat
coated steel. The quotas came into effect on 24 June and will remain valid
through October, when volumes will reset and new import licenses will be issued.
Nearly 300,000 metric tonnes (t) of coated steel can enter Brazil at a 9-10pc
duty rate, but volumes above that are subject to the higher 25pc tariffs.
Galvalume (GL), a zinc-aluminum coated product, accounts for 147,038t of the
quota. This item had 64pc of its four-month allocation already used by 9 July,
while hot-dipped galvanized (HDG) reached 56pc of its 144,286t limit. The fast
quota consumption rate points to robust demand, with buyers moving quickly to
front-load shipments before the limits are reached. Demand for hot-rolled coils
3mm or thinner was also strong, with buyers filling 65pc of the 9,520t product's
quota in two weeks. The quota system allocates 80pc of the total volume to the
largest importers, a rule that applies to all 17 steel products subject to the
25pc tariffs. The other 20pc of the limit is reserved for smaller market
participants. Smaller importers consumed 100pc of their share for at least two
steel products. This means smaller players must pay a 25pc tariff on further
shipments of those products until the quota resets in October. The Brazilian
government has extended the tariffs through May 2026, when it will evaluate the
future of the policy. The safeguard measure was first imposed in June 2024, but
had limited effect in curbing rising import volumes. Imports reached a record
5.9mn t in 2024 , according to industry group Instituto Aco. Beyond the quota
system, the government is also conducting anti-dumping investigations into
imports of hot-rolled, cold-rolled and coated steel. The probes are expected to
take at least six more months to conclude. No provisional duties have been
imposed yet . By Isabel Filgueiras Brazil steel import quotas t Product Quota
volume June-October 25 Consumed by 9 Jul % of consumption Hot-rolled HRC, ≥600mm
wide, 4.75–10mm thick 1,285 285 22.2 HRC, ≥600mm wide, 3-4.75mm thick 3,111
1,245 40.0 HRC, ≥600mm wide, ≤3mm thick, ≥275 MPa 9,520 6,232 65.5 HRC, ≥600mm
wide, ≤3mm thick 23,490 1,972 8.4 HRC, ≥600mm wide 29,394 578 2.0 Flat-rolled,
≥600mm wide 468 51 10.9 Cold rolled CRC, ≥600mm wide, 1-3mm thick 47,950 12,302
25.7 CRC, ≥600mm wide, 0.5-1mm thick 108,765 14,114 13.0 CRC, ≥600mm wide 9,273
4,763 51.4 Galvanized HDG, ≥600mm wide, <4.75mm 144,286 81,394 56.4 GL, ≥600mm
wide 147,038 94,821 64.5 HDG, ≥600mm wide 1,915 764 39.9 Wire rod Wire rod,
circular section <14mm dia 32,535 13,572 41.7 Tubes Seamless tubes ( oil, gas
industry) 6,295 1,627 25.8 Submerged arc welding steel pipes, >406.4mm OD 490 24
4.9 Welded circular steel pipes, >406.4mm OD 420 43 10.2 Welded circular (oil,
gas industry) 1,679 295 17.6 -Brazil's foreign trade secretariat Send comments
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