Major Brazilian Steelmakers Call For Import Tariffs - Report
18/04/2009 12:00
RIO DE JANEIRO -(Dow Jones)- Brazilian major steelmakers Gerdau (GGB) and CSN (SID) have called for tariffs against cheap steel imports, the O Valor newspaper reported Thursday.
"Protective mechanisms in Brazil are currently zero while the whole world has a 12% tariff," said Gerdau Chairman Jorge Gerdau Johannpeter.
Gerdau is the western hemisphere's largest long steelmaker.
"The option of taking antidumping steps is very slow and could take 12 to 18 months, and we need to protect our market," Johannpeter said.
According to Gerdau, imports historically account for 2% of Brazilian steel sales, but now they are reaching 15%.
Benjamin Steinbruch, president of Companhia Siderurgica Nacional, or CSN, agreed with Gerdau.
"We need to protect all sectors from imports in order to safeguard the domestic market and guarantee employment," said Steinbruch.
Gerdau said the recent resumption of orders for steel products doesn't amount to a recovery of the industry.
"There's a growth in sales month-on-month, but the fall in output is still the (steel sector's) characteristic at the moment, precisely in function of the high level of inventories," he said.
Gerdau and CSN have joined another steelmaker, Usiminas (USIM5.BR), in calling for antidumping measures.
In February, Usiminas asked the government to launch an investigation into China for allegedly dumping a 24,000 metric ton consignment of Chinese thick flat steel for a local shipbuilder.
Brazil's Steelmakers' Association, or IBS, said in February it was not taking action against dumping as an institution.
"In the specific case of dumping, it's up to the companies adversely affected to take the initiative and ask for cases to be brought," Marco Polo de Mello Lopes, IBS vice president, told Dow Jones in February.
Brazil's Ministry for Development, Industry and Trade told Dow Jones in February it had not noted any signs of dumping from China nor any other country.
"Protective mechanisms in Brazil are currently zero while the whole world has a 12% tariff," said Gerdau Chairman Jorge Gerdau Johannpeter.
Gerdau is the western hemisphere's largest long steelmaker.
"The option of taking antidumping steps is very slow and could take 12 to 18 months, and we need to protect our market," Johannpeter said.
According to Gerdau, imports historically account for 2% of Brazilian steel sales, but now they are reaching 15%.
Benjamin Steinbruch, president of Companhia Siderurgica Nacional, or CSN, agreed with Gerdau.
"We need to protect all sectors from imports in order to safeguard the domestic market and guarantee employment," said Steinbruch.
Gerdau said the recent resumption of orders for steel products doesn't amount to a recovery of the industry.
"There's a growth in sales month-on-month, but the fall in output is still the (steel sector's) characteristic at the moment, precisely in function of the high level of inventories," he said.
Gerdau and CSN have joined another steelmaker, Usiminas (USIM5.BR), in calling for antidumping measures.
In February, Usiminas asked the government to launch an investigation into China for allegedly dumping a 24,000 metric ton consignment of Chinese thick flat steel for a local shipbuilder.
Brazil's Steelmakers' Association, or IBS, said in February it was not taking action against dumping as an institution.
"In the specific case of dumping, it's up to the companies adversely affected to take the initiative and ask for cases to be brought," Marco Polo de Mello Lopes, IBS vice president, told Dow Jones in February.
Brazil's Ministry for Development, Industry and Trade told Dow Jones in February it had not noted any signs of dumping from China nor any other country.
-By John Kolodziejski, Dow Jones Newswires; 55-21-2586-6086; John.Kolodziejski@dowjones.com
Thursday April 16th, 2009 / 15h52
Dowjones Business News
Source: www.easybourse.com
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