USA countervailing duty on HRC will keep market 'closed' to Brazil

The preliminary countervailing duty margins set by the US Commerce Department on hot rolled coil (HRC) from Brazil will effectively keep the US market closed to Brazilian mills, traders told Steel First.

The department said on January 11 that Brazilian steelmakers, including CSN and Usiminas, will face duties of 7.42%.
Since the beginning of the trade case in August 2015, US distributors have shown reduced interest in Brazilian HRC material.
That situation is not expected to change any time soon.
And the difficult financial situation faced by Brazilian mills means the countervailing duty further reduces their ability to compete in the US market.

“The preliminary duty is low, but it is an additional cost,” a Brazil-based trader said. “Looking at the financial conditions of Brazilian...


Ana Paula Camargo

Felipe Peroni

January 13, 2016

21:30 GMT

São Paulo