On August 19, 2024, Brazil’s Ministry of Development, Industry and Foreign Trade initiated an anti-dumping duty investigation concerning cold-rolled flat-rolled carbon steel products imported from China. This action follows a formal petition filed by Usina Siderúrgica de Minas Gerais, a major Brazilian steel producer. The investigation aims to determine whether these steel products, which are categorized under various subitems of the MERCOSUR Common Nomenclature, are being imported at prices below their fair market value, potentially harming the local industry.
The scope of the investigation includes several classifications of flat-rolled carbon steel, both alloyed and non-alloyed, in forms such as sheets or coils. Specifically, the products under scrutiny are classified under subitems 7209.15.00, 7209.16.00, 7209.17.00, 7209.18.00, 7209.25.00, 7209.26.00, 7209.27.00, 7209.28.00, 7209.90.00, 7211.23.00, 7211.29.10, 7211.29.20, 7225.19.00, 7225.50.90, 7226.19.00, and 7226.92.00. These classifications encompass a broad range of steel products used in various applications, from automotive to construction.
The period under investigation spans from January 2023 to December 2023 for dumping practices and from January 2019 to December 2023 for injury assessments. This comprehensive timeframe allows the authorities to evaluate the pricing practices of Chinese exporters and their impact on the Brazilian steel industry over a significant period. The investigation will assess whether the steel products have been sold at unfairly low prices, which could be detrimental to the competitive position of domestic manufacturers.
Usiminas’ petition highlights concerns about the potential adverse effects of these imports on the Brazilian market. The company argues that the influx of low-priced Chinese steel could undermine local production, leading to potential job losses and decreased market share for domestic producers. As a leading player in the Brazilian steel sector, Usiminas’ concerns reflect broader apprehensions within the industry about the implications of unfair trade practices.
