STEEL TRADE FLOWS: Protectionism's unintended consequences for HRC in Brazil

In the second in a series on how global trade flows have changed since the rise of protectionism in the steel market, we look at the unintended consequences of recent hot rolled coil (HRC) trade cases involving Brazil.

The Latin American country is currently a party to two major anti-dumping cases, both launched in July last year. But in one it is a petitioner while in the other it is the defendant.
The European Commission (EC) is investigating Brazilian HRC imports, at the same time that Brazil’s foreign trade secretariat, Secex, is analysing the inflows of allegedly dumped HRC from China and Russia.
“The timing of the opening of both cases created an interesting situation,” a Brazil-based source said. “The volumes that mills were used to exporting could be redirected to the domestic market, as import shipment [volumes] have also decreased. It made it possible for companies to regain market share and introduce price increases.”
But the effects were not all positive.

As a consequence of weak demand in the local market, several Brazilian steelmakers had begun to focus on the export market to keep their facilities...

Published

Ana Paula Camargo

Felipe Peroni

March 28, 2017

16:25 GMT

São Paulo