Wedoany.com Report on Feb 28th, The latest forecast released by the Brazilian Steel Association (Instituto Aço Brasil, IABr) shows that Brazil's crude steel production in 2026 is expected to be 32.40 million tons, a decrease of 2.2% compared to the expected 33.10 million tons in 2025. This trend reflects the ongoing dual pressures of weak market demand and competition from imported products facing the Brazilian steel industry.

Data shows that domestic steel sales in Brazil in 2026 are expected to be 20.80 million tons, a year-on-year decrease of 1.7%; exports are expected to be 10.18 million tons, a slight decrease of 0.6%. Meanwhile, imports of rolled steel are expected to increase by 10% to 6.324 million tons, reaching a record high. The share of imported products in domestic consumption has already reached 21%, significantly higher than the historical average of 9.7%.

Marco Polo de Mello Lopes, Executive President of the Brazilian Steel Association, pointed out that the current capacity utilization rate of Brazilian steel mills is only 66%, far below the ideal level of 80-85%. The surge in imports has led to the loss of approximately 5,000 jobs in the sector and forced the shelving of investment plans worth 2.5 billion Brazilian reais (approximately 452 million US dollars).

The association has called on the government to adopt more effective trade defense measures to address competitive pressures from abroad. Industry representatives stated that failure to take action could lead to more factory closures and job losses.