Brazil is facing potential new barriers to rolled steel imports as current safeguards fail to adequately reduce foreign supply levels. According to the Brazilian foreign trade agency SECEX, importers have already utilized 74% of the total 529,113 tons of quotas available from October 1, 2024, to January 31, 2025. If imports remain within these quota limits, a 12.5% average import duty applies; exceeding the quotas incurs a 25% duty.

Utilization rates for specific product groups are as follows: heavy plates in coils at 6%, hot-rolled plates at 36%, cold-rolled flat products at 66%, galvanized sheet products at 90%, and wire rod at 41%. Analysts suggest that the current quota system and elevated import duties are unlikely to bring foreign supply levels down to historical averages, increasing the likelihood of Brazil implementing new import restrictions.

Earlier this year, the Brazilian government introduced import quotas for 11 types of steel products to protect local steelmakers from a surge of inexpensive imports, particularly from China. The increase in tariffs to 25% for shipments exceeding quotas will remain effective for one year.