Brazil's Secex Foreign Trade secretariat has decided not to impose temporary duties on Chinese hot-rolled coils (HRC), despite the discovery of evidence of dumping practices.
The investigation covers 25 products from the HRC and is due to conclude on July 20, when the secretariat will decide on permanent duties. Brazil may still postpone the decision until December due to the 18-month extension of the investigation, which began in June 2025.
Chinese suppliers were selling HRC at below-market prices, which hurt domestic manufacturers, Secex reported on December 24. The study used the US market as a benchmark for determining the normal value of import prices.
Preliminary calculations show a dumping margin for large Chinese enterprises. The Investigative Committee assigned Baosteel a margin of 46%, while Hebei Yanshan reached 51%.
These figures are driving down domestic prices, putting pressure on margins and weakening the financial performance of Brazilian steel producers including Gerdau, Usiminas and CSN, Secex said.
Imports put pressure on domestic prices, reducing margins. Brazilian manufacturers have reported in their latest earnings reports for 2024-2025. Argus - It is estimated that domestic prices for HRC have fallen by 11% since the beginning of the year.
. On December 26, Argus estimated the CFR on HRC in Brazil at 515-550 dollars per metric ton (t), while the post-production estimate was 3,600-3,800 rupees per ton (652.50-688.70 dollars per ton).
Increased import volumes
Secex also compared two-year periods to assess the impact of seaborne imports on the Brazilian market between 2019 and 2024.
Shipments of Chinese HRC to Brazil increased by about 26 times between 2019-2020 and 2023-2024, according to Secex data. Secex, which reflects an increase in import volumes by 2,636 units.
. According to the Aco Brasil Chamber of Industry, Brazil imported 678,619 tons of HRC from the beginning of the year to November. Chinese steel, which was thoroughly analyzed, accounted for 452,900 tons of the total volume.
The quality control of Chinese rolled products by HRC is the largest among imported sheet steels. Brazil is also conducting investigations into Chinese cold-rolled coils (CRC), pre-painted steel, and coated steel, which are expected to be completed by March.
