Brazilian construction companies import Turkish steel to cover shortages

To minimize steel shortages in the construction sector, some companies are importing rebar from Turkey. Coopercon-SC, a construction-materials-purchasing cooperative that represents construction companies in the southern region of Brazil, is bringing three ships of rebar – about 60 thousand tons – to the country this year.

According to the president of Coopercon, José Sylvio Ghisi, deliveries will be in May, September, and December. “120 companies from nine states are importing steel. Due to the delivery problems, construction companies are stopping contracts, sites, and failing to launch projects.”

According to him, the longer terms given by the mills, of around 120 days, also favor imports. On average, imported steel arrives in Brazil in 90 days.

Imported rebar is up to 25% cheaper than that produced in Brazil. This refers to the price at the port. The transportation cost depends on the location of the construction site, and this can slightly reduce this difference. “Steel in Brazil has undergone constant readjustments. The price of the ton has already risen more than 130% in the accumulated value from January 2020 to March 2021. This year alone, the increase was on average 30%”, he said.

Ghisi added that even with the exchange rate variation, imports are still viable due to the predictability of deliveries. The director stressed that the sector seeks to facilitate the purchase of steel in the international market with the temporary suspension of the import tax.

“What we are sending to the federal government and the Ministry of Economy is a request for this temporary exemption. It is a necessity because there is no steel in Brazil to supply the works ”, said Ghisi. The tariff is currently 12% and the exemption mechanism can be granted for six months to 18 months.

Source: Valor Econômico

Sharing is caring!