Brazil's Preliminary Decision on Anti-Dumping Investigation for Steel Cords
Brazil's Ministry of Development, Industry, Trade, and Services, through its Secretariat of Foreign Trade, released a significant ruling on January 23, 2025, regarding the importation of steel cords for tires from China. After conducting a thorough investigation, the Ministry concluded that there was not enough evidence to prove that Chinese producers were selling these steel cords at unfairly low prices, commonly known as "dumping." As a result, the Brazilian government decided not to impose any anti-dumping duties on the imported product.
The steel cords in question are classified under HS code 7312.10.10, which encompasses the specific type of steel wire used in tire manufacturing. This decision came after the Ministry launched the anti-dumping investigation on July 1, 2024, following a request from the Brazilian domestic producer Bmb Belgo Mineira Bekaert Artefatos de Arame Ltda, which alleged that the Chinese steel cords were being sold at artificially low prices in the Brazilian market.
The investigation itself focused on imports of steel cords for tires from China during the period from October 2022 to September 2023. Moreover, the Ministry also looked at the period from October 2018 to September 2023 for damage analysis to assess the impact of these imports on the Brazilian steel industry.
Key Aspects of the Investigation Process
The anti-dumping investigation is an essential tool used by governments to protect domestic industries from unfair trade practices, particularly the importation of goods at prices lower than their normal value in the exporter’s home market. In this case, the domestic Brazilian steel cord manufacturer, Bmb Belgo Mineira Bekaert Artefatos de Arame, expressed concerns that the influx of cheap steel cords from China was hurting local production and threatening jobs in Brazil’s tire manufacturing sector.
Brazil’s investigation was conducted in accordance with international trade rules, primarily under the World Trade Organization guidelines. The investigation sought to establish whether the Chinese exports of steel cords were being sold in Brazil at prices that could harm the local industry. To do so, authorities analyzed detailed pricing data, production costs, and market conditions.
The investigation period, which spanned from October 2022 to September 2023, helped the Ministry determine if there were significant pricing discrepancies between the Chinese steel cords and their Brazilian counterparts. However, the Ministry concluded that the evidence did not support the claim that Chinese exports were priced in a manner that could be classified as dumping.
The Ministry's Final Determination Timeline
Following the preliminary decision, Brazil’s Ministry has committed to extending its review and final determination timeline. The final ruling will be made within 18 months from the date the investigation was officially filed, which means that Brazil’s decision on whether to impose anti-dumping duties could be finalized by early 2026. This extended period will allow for a more detailed analysis of the data, including any new information that may arise.
The Ministry's investigation was designed not only to determine the pricing practices of the Chinese exporters but also to assess the potential harm these practices might have inflicted on the local Brazilian industry. If the final determination concludes that the imports from China did cause harm to Brazil’s steel cord production, anti-dumping measures, such as tariffs or duties, could be imposed on future imports of these goods.
