The Brazilian Ministry of Economy stated on November 5 that Brazil has temporarily reduced import tariffs on a variety of steel products in order to alleviate the impact of the new coronavirus pandemic on the national economy.
The ministry stated in a statement that the measure will be effective until December 31, 2022, covering raw materials such as pig iron and ferroalloys to semi-finished steel ingots, billets, slabs and flat steel, as well as long products including pipes. In the official gazette. Special steel is also cited.
According to the ministry, the import tariffs on carbon hot-rolled and cold-rolled coils, rebar and wire rod have been reduced from 12% to 10.8%.
The Brasil Institute stated earlier this year that the rising cost of raw materials such as iron ore, scrap steel and metallurgical coal was “the reason for the adjustment of steel prices in Brazil and the world”.
The Brazilian government stated that the measure will not harm the regional agreement because it was taken due to an emergency caused by the coronavirus pandemic.
The impact of the current temporary tariff reduction on domestic prices is temporarily unknown. According to the National Association of Flat Steel Distributors, a large number of ships are waiting to call at the southern port of São Francisco, causing congestion and further delivery delays. In addition, a trader said that the port has a large number of imported materials, most of which are waiting for customs clearance, and there is no more available space in the bonded warehouse. Another importer said that the reduction of tariffs by the Ministry of Commerce will not bring any changes, because the price of the final product will not change significantly because of the 1.2% reduction, and the impact of foreign exchange fluctuations may be more significant.
Post time: Nov-10-2021