Brazilian steel importers sharply increased shipments in the week through August 27, reaching 60% of the country’s steel import quotas, according to the Foreign Trade Secretariat.
Between August 20 and 27, imports jumped to nearly 16,000 tonnes, compared with the usual 3,000–5,000t per week. Over 10,000t of this volume was coated steel, highlighting continued strong demand in that segment.
Since the quota regime took effect in late June, buyers have imported 288,700t out of 475,000t eligible for reduced tariffs of 9–13%. Once this threshold is reached, additional shipments face a 25% tariff until quotas reset in October. The allocation renews every four months through June 2026 and covers 17 key products, including hot-rolled coils (HRC), cold-rolled steel, tubes, and coated flat steel.
- Coated steel: Represents 293,000t (61%) of total quotas, with strong utilization.
- Hot-rolled coils: Only 34% of quotas filled by late August, as higher import prices reduced competitiveness versus domestic supply.
Brazil introduced the quota system in June 2024 to curb a surge in imports, later extending it through May 2026 with reduced eligible volumes and four new products added. Despite these measures, imports are projected to reach 6.3 million tonnes in 2025—a 32% increase from last year, according to industry group Instituto Aço Brasil.
Outlook
With quotas filling quickly and tariffs set to rise once limits are met, Brazil’s steel sector faces a delicate balance between domestic production and surging import demand, pointing to a likely record year for shipments.
