Brazil imports 44 pct less steel from China in 2009

9 April 2010

Sao Paulo, Brazil, 9 April – Brazilian imports of steel made in China fell 44 percent in 2009 to US$470 million, reversing the growth trend after customs tariffs were raised, Brazilian state news agency Estado reported.

Citing trade figures from the United Nations, the agency said that the fall seen in steel imports was much higher than that seen in overall imports of Chinese goods, which fell 20.6 percent.

In the opposite direction, Brazil in 2009, more than doubled its steel exports to China to over US$1 billion, and of ore, which rose from US$7 billion to US$9 billion, for the first time overtaking agricultural products in overall exports to China.

Following pressure from the Brazilian steelmaking industry the federal government in June 2009 raised tax on imports of seven types of steel from zero to between 12 and 14 percent.

Since 2005 imported steel had paid no tax to enter Brazil and the government decision to tax it has benefitted Brazilian groups Companhia Siderúrgica Nacional (CSN) and Usiminas. (macauhub)