Brazil’s Cold-Rolled Steel Imports Surge Amid Tariff Quotas

Brazil’s Cold-Rolled Steel Imports Surge

In recent weeks, Brazil has seen a notable acceleration in cold-rolled steel imports, signaling increasing demand for these products. Between September 10-17, nearly 9,000 metric tonnes (t) of cold-rolled steel were imported, a significant uptick from the previous period when consumption remained flat. As of September 17, 69% of the total available 93,500 tonnes of cold-rolled steel under the reduced tariff system were consumed.

This increase in imports is part of Brazil’s ongoing strategy to manage steel imports through a tariff quota system, which was introduced in June 2024. The system aims to control the influx of foreign steel by applying reduced tariffs for a set quota, while imports beyond this threshold face a steep 25% tariff. The policy, extended through May 2026, has been instrumental in regulating steel volumes while still meeting domestic demand.

Brazil’s Steel Import Quota System: Key Insights

The tariff quota system has seen a steady rise in total quota usage. By mid-September, 311,136 tonnes of the available 497,130 tonnes had been imported under the reduced tariffs, representing a strong uptake despite the restrictions. Most of the imported material is still awaiting customs clearance, with only 142,700 tonnes processed by that time.

The quota regime applies to 19 steel products, with cold-rolled steel being one of the primary commodities affected. According to data from Brazil’s foreign trade secretariat, the country imported over 11,000 tonnes of quota-covered steel products during the September 10-17 period. Importantly, once the current quota system ends on October 23, a new quota period will begin, with lower tariffs once again applied.

Despite these restrictions, Brazil is on track to set a new record for steel imports in 2025. The country’s industry chamber, Instituto Aço Brasil, predicts that rolled steel imports will reach 6.3 million tonnes by the end of 2024, marking a 32% increase from the previous year.

SuperMetalPrice Commentary:

Brazil’s evolving steel import quota system reflects a broader strategy to balance domestic consumption with global supply chain pressures. While tariffs help regulate imports, the surging demand for cold-rolled steel demonstrates the resilience of Brazil’s steel market. With expectations for record imports in 2025, Brazil’s steel industry faces both opportunities and challenges in navigating the delicate balance between tariff controls and import demand. As global steel producers continue to adjust to new trading dynamics, Brazil’s position as a significant consumer market for cold-rolled steel will remain pivotal in shaping industry trends.