ArcelorMittal announced it had halted its US$460 million expansion project at the João Monlevada plant in Minas Gerais, Brazil, due to rising steel imports. The company cited slow domestic demand and a surge in imports, particularly from China, as key reasons for the suspension.

The Luxembourg-based steel giant was in the process of expanding its Brazilian facilities when it decided to reassess the project, citing the challenging macroeconomic scenario.

Brazil’s steel industry was heavily impacted by imports, which surged 26.4% from January to May 2024 compared to the same period in 2023, reaching 2.31 million tons. In response, the Brazilian government introduced import quotas and raised import taxes to 25% on 11 steel product categories to protect the domestic market.