The Brazilian foreign trade authority (SECEX) has initiated an antidumping investigation into hot-rolled coil (HRC) imports from China, including various dimensions, grades, cut-to-length products, and certain special alloys. The probe follows concerns over potential dumping practices affecting Brazil's domestic steel market.
SECEX will determine whether Chinese HRC exports are being sold below fair market value, with the U.S. market price serving as the initial reference. However, involved parties may propose alternative reference markets during the investigation, which must conclude within 70 days.
In 2024, Brazil imported 632,400 metric tons of HRC, with China accounting for 538,970 metric tons—over 85% of total imports. The surge in Chinese shipments has raised alarms among local producers, prompting the investigation. A finding of dumping could lead to punitive tariffs on Chinese HRC, aiming to protect Brazil's steel industry.
The move reflects growing global trade tensions, particularly in the steel sector, where China's export competitiveness often faces scrutiny. Brazilian manufacturers have long advocated for stricter trade measures, while importers warn of potential supply disruptions and higher costs. The outcome of the probe will be closely watched by both domestic and international stakeholders.
