ArcelorMittal Identifies Risks to Brazilian Expansion Due to Imports and Tariffs

ArcelorMittal SA’s growth strategies in Brazil could face challenges due to a spike in low-cost steel imports and the impact of US tariffs, according to Jorge Oliveira, the company’s head of Brazilian operations.

The leading steel producer in Brazil has allocated a 25 billion-reais ($4.6 billion) investment budget for the country until 2026, with an additional “appetite” to invest another 10 billion to 12 billion reais, Oliveira mentioned on Tuesday. However, their initiatives, which include the establishment of a new lamination plant in Espirito Santo state to decrease slab exports, may be delayed if import levels continue to rise.

US President Donald Trump’s tariffs on imported metals have redirected global steel trade, increasing Brazil’s vulnerability to a surge in shipments. Since 2020, Brazilian steel imports have risen by 200%, despite the nation’s own new trade protection measures. Concurrently, this shift has compelled ArcelorMittal to explore alternative markets for around 400,000 tons of slabs that were previously destined for Canada.

Nonetheless, ArcelorMittal Brazil is maintaining its export volumes to the US at levels comparable to 2024, when it exported approximately 3.4 million tons of slabs. This year, shipments to its Calvert plant in Alabama are expected to reach 1.4 million tons, Oliveira indicated.

The multinational remains Brazil’s largest steel producer, accounting for 40% of the national output, with about one-third comprised of semi-finished steel products exported to the US.

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