Brazil Steel Quotas Filled 60% Amid Tariff Regime

Brazil Steel Quotas Utilization Hits 60% of Allowed Imports

Brazilian importers used 299,300 metric tonnes (60%) of the 497,130t steel quota under 9–13% tariffs by 10 September. Imports above that quota will incur a 25% tariff until 23 October, when Brazil resets the quota and reduced-rate window. Customs cleared only 139,400t out of that 299,300t; the rest remains in transit or pending clearance. Flat products saw minimal imports under the low-tariff policy (less than 1,000t), signaling that traders prioritized other steel types. Brazil added I‑beams and H‑beams into the quota regime, allowing 21,330t under lower tariffs from late August through December.

Effects and Forecasts for Brazil’s Steel Import Policy

The quota system began in June 2024 to curb surging foreign steel imports. Brazil’s government extended the policy through May 2026, adding more product categories while reducing the volumes eligible for reduced tariffs. Industry group Instituto Aço Brazil predicts rolled steel imports will reach 6.3 million tonnes in 2025—a 32% increase year-on-year. Domestic producers criticize current quotas and tariffs as insufficient to stem import growth, particularly from China.

SuperMetalPrice Commentary:

Brazil’s quota system fills quickly, showing strong demand and insufficient protection for local steelmakers. While reduced tariffs provide some relief, fast-approaching thresholds will force many importers into higher tariffs. Brazil must assess whether further tightening or additional trade defense measures—such as broader anti-dumping actions—might protect domestic capacity. For global steel markets, these developments suggest rising costs for exporters targeting Brazil, especially in flat rolled and beam products.