Brazil coated steel quota nears limit

Market: Metals
14/10/25

Importers filled 79pc of the 293,200 metric tonne (t) coated steel quota in Brazil as of 8 October, the foreign trade secretariat (Secex) said.

Consumption of the three coated products under theimportquota policy accelerated in the first week of October. The activity coincides with the end of the first term in Brazil's renewed quota cycle on 23 October.

Buyers claimed nearly 21,000t of imported coated steel from 1-8 October, up from a 5,000t weekly average from June-October.

Brazil currently has 19 steel products under the quota policy, allowing 497,130t to enter the country under lower tariffs. Once the quota is exhausted, higher import duties apply, jumping from 10pc to 25pc.

The quota regime covers imports for a four-month period, when it resets allowing importers to bring in material under lower duties.

Galvanized and galvalume were the first products to near their quota thresholds, as buyers moved quickly to fill gaps in domestic supply and meet steady demand from the civil construction sector.

Import licenses for smaller consumers were exhausted within the first three weeks of the current term.

Brazil imported 27,900t of quota-covered steel products from 1-8 October. This volume includes bookings and shipments for all 19 steel products covered by the quota regime. Less than 145,000t of the over 353,000t filled by 8 October has cleared customs.

The country introduced the quota system in June 2024 to control rising steel imports. A year later, the government extended the policy through May 2026, adding four new products and reducing volumes eligible for lower tariffs.

Brazil is on track for a new import record in 2025 despite the restrictions. Rolled steel imports will reach 6.3mn t by year-end, an increase of 32pc from 2024, industry chamber Instituto Aço Brasil said.

By Isabel Filgueiras

Brazil steel import quotas					metric tonnes
Product	Full Quota	Consumed by 8-Oct	Difference on week	Balance by 8-Oct	Share consumed (%)
Hot-rolled
HRC, ≥600mm wide, 4.75–10mm thick	1,285	235	0	1,050	18.3
HRC, ≥600mm wide, 3-4.75mm thick	3,111	2,003	0	1,108	64.4
HRC, ≥600mm wide, ≤3mm thick, ≥275 MPa	9,520	6,853	0	0	72.0
HRC, ≥600mm wide, ≤3mm thick	23,490	5,405	1,173	18,085	23.0
HRC, ≥600mm wide	9,798	4,254	0	5,544	43.4
Flat-rolled, ≥600mm wide	468	181	8	287	38.6
Cold rolled
CRC, ≥600mm wide, 1-3mm thick	47,950	35,831	3,370	12,119	74.7
CRC, ≥600mm wide, 0.5-1mm thick	36,255	25,187	1,753	11,068	69.5
CRC, ≥600mm wide	9,273	9,044	209	229	97.5
Galvanized
HDG, ≥600mm wide, <4.75mm	144,286	107,540	14,908	36,746	74.5
GL, ≥600mm wide	147,038	124,994	6,020	22,044	85.0
HDG, ≥600mm wide	1,915	1,493	8	422	78.0
Wire rod
Wire rod, circular section <14mm dia	32,535	22,133	0	10,402	68.0
Tubes
Seamless tubes ( oil, gas industry)	6,295	3,043	102	3,252	48.3
Submerged arc welding steel pipes, >406.4mm OD	490	178	33	312	36.4
Welded circular steel pipes, >406.4mm OD	420	73	0	347	17.3
Welded circular (oil, gas industry)	1,679	667	51	1,012	39.7
Beams
I-beam, ≥80mm	17,121	4,446	277	12,675	26.0
H-beam, ≥80mm	4,201	1,057	119	3,144	25.2
Source: Siscomex

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