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Brazil terminates anti-dumping investigation against 5 domestically-made flat products such as China

On September 27, 2012, Brazil’s Trade Protection Agency announced that it will terminate its anti-dumping investigations on plain carbon and galvanized flat products originating in five countries: Australia, China, South Korea, India and Mexico. At present, Brazil's steel import tariff is still 12%.
In October 2010, Brazilian National Ferrous Metallurgical Company filed an anti-dumping lawsuit against these products imported from the above five countries. The company is the second largest manufacturer of flat products in Brazil, with coated plate production accounting for approximately 56% of Brazil's total production. The lawsuit was also supported by its rivals Minas Gerais and ArcelorMittal Brazil.
In December 2010, Brazil’s Trade Protection Agency accepted the case. However, the survey results showed that such products imported from the above five countries did not cause damage to the local industry. Brazil’s Trade Protection Agency stated that even if anti-dumping actions occur for coated plate products imported from Australia and other countries, it cannot be concluded that the local steel industry will be affected. According to local distributors, due to the fact that Brazilian ferrous metallurgical company almost completely controls the domestic coil market, the dealer’s payment deadline is strictly limited, so some local distributors are totally dependent on imported products.
In addition, the decision of the Brazilian government to terminate the investigation may also benefit from the efforts made by Brazilian President Dilma Rousseff to protect the local manufacturing industry. In order to increase the international competitiveness of local manufacturing industries, Dilma Rousseff has adopted a series of measures, including lowering tax rates and interest rates, providing more subsidies, and raising import tariffs on 100 products.
For decades, benefiting from the tax cuts and high tariffs imposed by the Brazilian government on imported steel, Brazil’s local steel prices have been enjoying a premium of 35% over international prices. However, with the gradual cancellation of price premiums in 2010, the Brazilian steel industry has entered a difficult period. Due to the global steel production capacity surplus, the low steel prices, and the strengthening of Brazil's Rial, resulting in export difficulties, the Brazilian steel industry is even worse.