ArcelorMittal delays $894 million Brazil expansion study
By the AFREEQUE newsroom, based on TimesLIVE
ArcelorMittal is delaying consideration of an $894 million expansion of its Pecém plant in Brazil to produce hot-rolled steel. The steelmaker is still examining the project amid competition from Asian imports, according to Jorge Oliveira, ArcelorMittal’s head in Brazil.
ArcelorMittal is still evaluating an investment of $894 million to add a production line for hot-rolled steel coils at its Pecém site, in the Brazilian state of Ceará. Jorge Oliveira, ArcelorMittal’s head in Brazil, said on Tuesday that the project study was taking longer than expected and that there was no longer a firm timetable, while maintaining the possibility of a decision by the end of the year, according to Reuters.
The project involves installing a hot-rolling mill to transform semi-finished slabs into higher-value steel products. ArcelorMittal is due to present the economic data related to the investment in February, the company said last week, according to Reuters.
The increase in low-cost imports, mainly from Asia, is weighing on the project. Their share of the Brazilian market was close to 18%, compared with about 10% before the pandemic, while ArcelorMittal estimates it would need to fall below 12% for the investment in Pecém to be economically viable, according to Oliveira, cited by Reuters.
Brazil has extended its steel import control measures for the 2026-2027 cycle, with a 25% tariff above quotas for the products concerned. ArcelorMittal and other producers are nevertheless calling for broader trade protections and faster anti-dumping investigations, Reuters reports.
