ArcelorMittal Discovers Risks to Brazilian Growth from Imports and Tariffs

According to Jorge Oliveira, the head of Brazilian operations at ArcelorMittal SA, the company’s growth strategies in Brazil may encounter hurdles due to an increase in low-cost steel imports and the effects of US tariffs.

The foremost steel producer in Brazil has set aside a 25 billion-reais ($4.6 billion) investment plan for the country through 2026, with an additional “desire” to invest another 10 billion to 12 billion reais, Oliveira stated on Tuesday. However, their plans, which include the construction of a new lamination plant in Espirito Santo state to minimize slab exports, could be postponed if import levels keep rising.

The tariffs imposed by US President Donald Trump on imported metals have shifted global steel trade, heightening Brazil’s exposure to an influx of shipments. Since 2020, Brazilian steel imports have surged by 200%, despite the country implementing new trade protection measures. This transition has also led ArcelorMittal to seek alternative markets for about 400,000 tons of slabs originally intended for Canada.

Nevertheless, ArcelorMittal Brazil is keeping its export volumes to the US at levels similar to those of 2024, when it exported around 3.4 million tons of slabs. For this year, shipments to its Calvert plant in Alabama are projected to reach 1.4 million tons, according to Oliveira.

The multinational continues to be Brazil’s largest steel producer, representing 40% of the nation’s output, with approximately one-third consisting of semi-finished steel products exported to the US.

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