Brazil's foreign trade system Siscomex has approved a new round of steel import quotas, reduced by 11 percent compared to the previous allocation, allowing specified volumes to enter the country at regular tax rates ranging between 9 and 16 percent. Imports exceeding these thresholds remain subject to a 25 percent tariff. The total volume approved on June 26, with validity through October 25, 2026, stands at 394,657 metric tons, down from the 445,469 metric tons authorized in the previous round that expired in June.
A preliminary utilization review conducted on July 22 showed the new quotas have reached 38.5 percent uptake. The current round covers a range of flat and long steel products. Approved volumes by product category are as follows: plates in coils at 900 metric tons, hot-rolled coil (HRC) at 25,285 metric tons, cold-rolled coil (CRC) at 54,375 metric tons, zinc-coated products at 144,285 metric tons, galvalume at 147,038 metric tons, and wire rod at 22,774 metric tons.
In the preceding quota period, which ran from February 24 to June 23, 2026, Siscomex had authorized 445,469 metric tons of finished steel products at regular tax rates. As of the May 20 update, average utilization across all product categories had reached 60 percent, up from 56 percent recorded on April 22. Galvalume registered the highest utilization at 77 percent, followed by zinc-coated products at 72 percent and CRC at 54 percent.
HRC utilization stood at 18 percent, up from 12 percent in the prior reading, while wire rod and plates in coils remained at 16 percent and 19 percent respectively. Despite the quota mechanism, Brazil's domestic steel industry continues to argue that the measures are insufficient to meaningfully curb steel imports arriving at alleged dumping prices. The sector nonetheless expressed optimism following the introduction in February of antidumping duties targeting CRC and coated flat products imported from China, viewing that measure as a more direct tool to address unfair trade practices.
Source: SteelOrbis / Luiz Compagnoni
Source: steelorbis.com