Brazil Cuts Duty on Steel Plates for Six Months Because of Supply Shortage

Brazil has lowered for six months import duties on some steel plates used to produce capital goods for the petrochemicals industry because of supply shortages, the Trade Ministry said.

Brazil reduced to 2 percent from 12 percent the import tax it charges on two specific steel plates, the ministry said in a statement on its website. Brazil also set a limit of up to 800 tons and 250 tons for the importation of each plate, the ministry said.

Brazilian manufacturers don’t currently produce the plates, even though they have the spare capacity to do so, the ministry said.

Latin America’s biggest economy has been facing bottlenecks after growing 9 percent on an annual basis in the first quarter, driven by consumer demand and investment. The use of installed capacity fell to 82.3 percent in May, from a 19-month high of 82.8 percent in April.

To contact the reporter on this story: Iuri Dantas in Brasilia at idantas@bloomberg.net

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