BRASILA: The decision by the Brazilian government not to impose final trade sanctions against imports of hot-rolled coil (HRC) from China and Russia is expected to create import windows and to raise the pressure on local producers, according to market participants.
The option to immediately suspend the sanctions came despite the confirmation of dumping practices by the two nations. “The Chinese and Russian exporters will explore this new opportunity, especially in times such as now when Chinese [firms] seem to be more export-minded than before the New Year,” a Brazil-focused steel trader said.
If this goes hand in hand with a better market situation in Brazil, then there will be space for all producers he added. Rumors indicating that Brazil would not set anti-dumping duties on HRC imports from China and Russia emerged late last year, restimulating a market that was virtually static.
