Brazil doubles import tax on steel wires, ropes to protect local fabricators

Brazilian trade body GECEX, part of the Development, Industry, Commerce and Services Ministry, announced Oct. 17 it was doubling import tariffs on imports of steel wires and ropes, as well as various types of iron and steel construction goods “to strengthen [the] Brazilian industry.”

Imports of these products have increased significantly in recent times, causing harm to local producers, GECEX said in a statementwithout giving further details.

Import tariffs would rise to 25% from the current 12.6% on iron and steel wires, cables and ropes, including galvanized, coated and non-alloy, uncoated. On silicon-manganese alloy steel wires, import tariffs would rise from 14% to 25%.

Some other iron and steel construction materials would see tariffs raised for a temporary period until May 31, 2025, GECEX said. These included the import tariff for steel nails rising from 14% to 25%, soldered products and nets from 12.6% to 25%, coated wire products from 10.8% to 25% and galvanized wire products from 12% to 25%.

The tariff increase followed a request from the National Union of Ferrous Metals Wire Drawers and Rollers, or SICETEL, the government department said.

SICETEL made no immediate comment on the government’s resolution Oct. 18, but said its member companies number around400 and process around 4 million mt/year of steel.

Platts, part of S&P Global Commodity Insights, assessed the weekly domestic Brazilian HRC price at Real 4,200/mt ($747.33/mt) ex-works Oct. 11, taxes excluded, based on a Real 4,100-4,300/mt range.