Brazilian steel imports hit the brakes in November

Steel imports by Brazil met industry expectations, albeit dropping almost 16% from October and posting single-digit growth compared to the same month last year, according to data from Aço Brasil, the entity representing steel mills in the country.

The internalization of material produced abroad fell by 15.9% in November compared to October, totaling 356,000 tonnes, a 9.2% increase year-on-year. However, the year-to-date balance until the end of last month still shows a nearly 50% expansion in steel imports by Brazil, reaching 4.5 million tonnes.

On the previous day, CSN’s Commercial Director, Luis Fernando Martinez, stated that imports seemed to have reached a peak, expecting a decline in the coming months. This assessment followed other comments from industry members, including the association of flat steel distributors Inda.

The national steel industry has been urging the federal government for months to impose a 25% import tariff on steel to curb the advance of Asian producers such as China, which accounted for 71% of the alloy that arrived in the country in November, according to Aço Brasil data.

Despite the decline in imports, crude steel production in November slightly increased, rising by 3.8% compared to the previous year and 2.8% from October, reaching 2.74 million tons. So far this year, the production volume is 29.35 million tons, a 7.1% decrease.

The November production saw the restart of operations at Usiminas’ largest blast furnace, number three at the Ipatinga plant. However, the month was marked by announcements of production suspensions by companies such as ArcelorMittal, which reported “technical stops” at three facilities in São Paulo, Rio de Janeiro, and Minas Gerais at the end of the year due to weak demand and high imports.

Last month, steel sales in the domestic market fell by 2.1% compared to November 2022 and decreased by 1.4% month-on-month, reaching 1.6 million tonnes. The sector sold 18 million tonnes of steel in the country, a 5% decrease compared to last year.

Meanwhile, exports from Brazilian steel mills in November fell by about 12% compared to October but increased by nearly 20% compared to November of the previous year, reaching 971,000 tonnes.

Source: Terra

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