In Response to Chinese Steel Imports, ArcelorMittal May Cancel BRL 10 Billion Investment in Brazil

The president of ArcelorMittal Brasil, Jorge Luiz Ribeiro de Oliveira, stated that the company may cancel a BRL 10 billion investment if the federal government does not at least renew the quota-tariff system on Chinese steel imports adopted by Brazil a year ago. The system expires at the end of this month.

“May is a key month for discussing the sector’s future,” Oliveira said in an interview with O Estado de São Paulo published on Thursday (May 22).

According to the report, imports of finished steel products rose 34% compared to the same quarter in 2024, and companies expect the same pace to continue starting in April.

“The concrete fact is this: the minimum that can happen is the maintenance of the regime approved [a year ago]. ArcelorMittal trusts that the government will renew the measure and believes that it will continue working with the industry on more effective solutions after the renewal.”

See below a historical overview of steel product imports from China. The chart was prepared using DataLiner data:

Imports of Steel Products from China | Jan 2022 – Mar 2025 | TEUs

Source: DataLiner (click here to request a demo)

Investments

Oliveira highlighted a potential BRL 4 billion investment in the Tubarão plant (in Serra, Espírito Santo) to build a cold rolling and steel galvanizing unit. According to him, the company is considering around BRL 10 billion in new investments on top of the BRL 25 billion already invested in Brazil since 2022.

“These investments could be affected if there is no effective control over imports. The Brazilian industry needs the right conditions to continue generating jobs and products. Brazil is one of the group’s options—and a priority—for new investments. But, if imports are not controlled, that strategy may be reconsidered.”

Source: Money Times

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