Massive steel imports from
China are causing tensions among Brazilian industry players.
Local steel companies are demanding the government raise tariffs
on Chinese steel from 10.8%-12% to 25%, but machinery and equipment producers
are opposing such measures because they fear higher input costs.
Folha de S. Paulo newspaper
quoted José Velloso, the head of machinery and equipment industry
association Abimaq, as saying that steel association Instituto Aço Brasil and individual producers were
blackmailing the government.
Steel companies claimed Chinese imports could lead to local
production stoppages and the cancelation of planned expansions.
The
government has not yet taken a position, but stepped up protective measures
could negatively impact the relationship with China, which is Brazil's main
trade partner.