US steel tariff will not have ‘relevant impact’ on Usiminas sales, Brazilian mill says

The 25% import tariffs imposed by the United States government are not expected have a “relevant impact” on Usiminas’s sales, the Brazilian flat steel producer told Metal Bulletin on Friday March 9.

The US market accounted for 4% of the company’s steel exports in 2017 and to only 1% of its foreign sales in the fourth quarter of last year.

In 2017, Usiminas’s total steel exports came to 585,000 tonnes, compared with sales to the Brazilian local market of 3.44 million tonnes.

“Although we are not directly [affected] in the short term by these [tariffs], Usiminas vehemently repudiates this type of measure, which damages the global free trade and Brazil’s interests,” the company said.

On Thursday, US president Donald Trump confirmed his previously announced tariffs of 25% on steel and 10% on aluminium imports into the US.

After the announcement of the trade measures, the Brazilian government and national steel institute Aço Brasil said they would decide whether to “immediately file an appeal” with the US government against its “extreme” decision to impose a 25% duty on steel imports.

Usiminas said that previous tariffs imposed by the US had already affected its exports, forcing it to look for new markets in Europe and Latin America.

In July 2016, the US Commerce Department set a final countervailing duty of 11.09-11.31% for Brazilian exports of cold-rolled coil, while anti-dumping margins were set at 14.43%-35.43%.

And in August 2016, the US imposed a countervailing duty of 11.09-11.30% against imports of hot-rolled coil (HRC) from Brazil, as well as anti-dumping margins of 33.14-34.28%, effectively closing the market to Brazilian steel, according to market participants.

What to read next
The consultation, which is open until October 28, 2022, seeks to ensure that our audited methodologies and price specifications continue to reflect the physical markets for alumina, aluminium, cobalt, copper, lithium and manganese ore, in compliance with the International Organization of Securities Commissions (IOSCO) principles for Price Reporting Agencies (PRAs). This includes all elements of our pricing process, our price specifications and publication frequency.
Fastmarkets is inviting feedback from the industry on its pricing methodology and product specifications for non-ferrous materials, as part of its announced annual methodology review process.
Fastmarkets wishes to clarify in this pricing notice its current methodological approach to Russian brands in its metals and mining pricing assessment process after Russia’s unprovoked invasion of Ukraine.
Fastmarkets’ Shanghai-London arbitrage calculations for base metals were published incorrectly on Wednesday September 28 due to a reporter error,
Is the ‘green’ advantage held by steel companies in the US at risk as the market adopts a more rigorous approach to reducing Scope 3 emissions?
Spot demand for aluminium is softening and Rotterdam premiums now, at the end of September 2022, are at a nine-month low, so market participants are considering whether Europe remains an attractive destination for imports
We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
Proceed