Usiminas Gains Most from Steel Trade Protection in Brazil

Brazil’s government recently raised the import tariff on steel to 25% for selected products, positioning Usiminas, Brazil’s largest steel producer, to potentially thrive.

As global trade shifts, this increase, targeting specific steel items, is set to significantly alter the competitive dynamics favoring domestic companies.

Usiminas, particularly dominant in the national market for rolled steels, sees this as an opportunity to recover from the heavy competition it faced from Chinese imports.

This dual approach aims to discourage excessive imports that surpass these limits, thereby supporting local producers like Usiminas.

The intense competition from Chinese steel, which grew by 30% over previous years, has put significant pressure on Usiminas, forcing temporary reductions in operations.

This anticipated change should offer Brazilian steelmakers like Usiminas more room to adjust prices and possibly regain market share.