China's Weak Steel Demand Sends More Cheap Steel To Brazil, Raising Concerns For Local Industry

(MENAFN- The Rio Times) Brazil is seeing a big jump in steel imports from China because China's own demand for steel is not growing. Official numbers show that in the first three months of 2025, Brazil bought 1.096 million tons of steel from China.

This is almost 58% more than the same period last year. Now, most of the flat steel Brazil imports-about 78%-comes from China. Brazil tried to limit steel imports by setting quotas and adding a 25% tax on steel that goes over those limits.

But these steps have not stopped the increase. By March 2025, Brazil had used up most of its yearly quota, and imports kept rising. In March alone, Brazil imported 663,000 tons of steel, and about 70% of that came from China.

China's steel industry is facing problems at home. The country's construction sector, which usually uses a lot of steel, is shrinking. Official data shows that China made 86.6 million tons of steel in May 2025, which is almost 7% less than a year earlier.

For the first five months of 2025, China's steel production dropped by nearly 2%. At the same time, China is exporting more steel than ever-almost 49 million tons in the first five months of 2025, up nearly 9% from last year.



Brazil's steel companies are worried. They say it is hard to compete with cheaper Chinese steel. Imported steel now covers about a quarter of Brazil's needs.

The government responded by cutting the import quota for 13 types of steel by 250,000 tons for the next year. Only 1.43 million tons will get a lower tax, and anything above that will face the full 25% tax.

Despite these actions, Brazil's steel imports are still much higher than in the past. The system of quotas and taxes will end in May 2025, and it is not clear what will happen next. Local steelmakers say this situation puts their businesses and jobs at risk.

This matters because steel is important for building and manufacturing in Brazil. If local companies cannot compete, Brazil could lose factories and become more dependent on foreign steel.

The numbers show that China's weak demand at home is pushing more steel into Brazil, and local industry is struggling to keep up.

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