SÃO PAULO Brazilian flat steelmaker Cia. Siderúrgica Nacional (CSN) expects cold-rolled coil and hot-dipped galvanized coil to be included in a new list of goods that will have temporarily higher import tariffs.
"Domestic ... markets continue to be threatened by Chinese imports," commercial executive director Luis Fernando Martinez said in a conference call with analysts Nov. 1.
The Brazilian government announced in September that it would temporarily raise the import duty on 100 products from several sectors by as much as 25 percent (amm.com, Oct. 2). This includes steel materials such as hot-rolled coil and heavy plate.
"The inclusion (on the new list) would make sense mainly for the galvanized products, as an anti-dumping (duty) has been recently denied," Martinez added.
Brazilian foreign trade secretariat Secex announced in September that its investigation into imports of coated flat steel products has failed to establish any anti-dumping rights.
Martinez noted that price premiumsthe difference between domestic and international pricesfor cold-rolled coil are currently at 7 to 9 percent while premiums for hot-dipped galvanized are at 10 to 12 percent.
Price premiums for hot-rolled coil are set at 2 to 6 percent, and "this difference may disappear or could even be negative with the increase on hot-rolled coil import duties from 14 percent to 25 percent as a result of the Secex existing list," he said.
Moreover, the executive confirmed that CSN raised its flat steel prices by some 3.5 to 5 percent to domestic distributors for deliveries starting Sept. 1, which accounts for 30 percent of the companys total sales volume.
"These increases may contribute to improve the companys revenues in the current quarter," he added.
A version of this article was first published by AMM sister publication Steel First.