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Ukraine War Boosts Brazil’s Case for Lifting U.S. Steel Limits

  • Brazilian mills are hoping for an end to U.S. quota system
  • Steelmakers want to keep scrap production within the country
Severstal PJSC Steel Mill as Omicron Ruffles Metals Market

Source: Bloomberg

Brazilian steel mills see trade disruptions spurred by Russia’s invasion of Ukraine as motivation for the U.S. to lift restrictions on imports of the alloy.

The Brazilian steel industry is asking its foreign affairs ministry to seek a resumption of talks with U.S. authorities to repeal so-called Section 232 measures that limit shipments of semi-finished product, mostly slab, to 3.5 million metric tons a year, said Marcos Faraco, chairman of industry association Instituto Aco Brasil. Last month, Japan reached a deal to allow most of its steel shipments to enter the U.S. tariff-free.