Even with the government’s decision to take some measures to curb steel imports, Brazil's steel industry will endure sustained pressure from high import volumes, according to Carlos Loureiro, president of Brazil's National Institute of Steel Distributors (INDA). He said that the volume of flat steel entering Brazil today made imports the country's third-largest supplier, with flat steel imports rising by 21% year on year in April, reaching 293,300 tons.

From January to April, imports grew by 31.7% year on year to nearly 1.09 million tons, despite existing quota and tariff regimes that will to expire at the end of this month. However, the government has given little indication of extending the existing scheme, which applies a 25% tariff on 11 steel products exceeding import quotas. Despite rumors that a 25% tariff could be imposed on all steel imports from China next week, Loureiro stressed that this is mostly a hope for the industry.

Loureiro said there is a backlog of around 750,000 tons of steel awaiting unloading at the Port of São Francisco do Sul, plus 200,000 tons already warehoused. He expected this would pressure the market for at least the next four to five months and lead to downward pressure on prices, regardless of new government measures.