The Brazilian Steel Institute (IABr) has warned of a potential collapse of the sector due to increased steel imports, particularly those from China, which now account for 64% of total imports.

According to IABr's figures, currently the imported steel already holds its highest share of the Brazilian market in the last fifteen years, despite the implementation of a 25% import tariff on some steel products at the beginning of this year.

IABr anticipates that the steel imports will continue to rise through 2026 and that domestic production will decline by 2.2% year-on-year. Therefore, the steel body urges the federal government to implement new trade defenses; otherwise, the country's steel industry will suffer job losses and a decline in investment throughout the entire industrial chain.