en.Wedoany.com Reported - The metallurgical industry in Brazil accounts for approximately 3.1% of the country's industrial GDP and is regarded as a significant driver of the economy. However, despite abundant resources, the nation has yet to establish a dominant position in the deep processing of raw materials. Against the backdrop of rising strategic material prices and logistics costs due to global conflicts, enhancing local development capabilities has become particularly critical.
Laís Leoncini, Business Manager at the multinational consultancy FI Group, pointed out: "Through localized development in the steel and metallurgy sectors, Brazil's domestic industry will become more competitive and less volatile, thereby reducing the risk of production shortages caused by global supply chain instability. Reducing dependence on imports aids overall industrial planning, especially concerning product pricing and profit margins." She added that decreasing the consumption of imported products helps prevent further shrinkage of domestic industrial investment, avoiding business closures, bankruptcies, and large-scale layoffs, which affect the country's overall socio-economic situation.
Brazil's development potential and market demand are equally immense. Laís stated: "Brazil possesses abundant, renewable, high-quality mineral resources, while domestic demand requires a diversified metallurgical industry chain. Its industrial base is committed to infrastructure growth and technological advancement." Combining economic and sustainable strategies is considered the ideal direction. Given its advantages in green metals and renewable energy, sustainability, social environmental responsibility, and decarbonization represent potential strategic trends for the country. Furthermore, technologies already applied in global industry, such as automation, digital manufacturing, and artificial intelligence, are also seen as pathways to enhance sector efficiency and productivity.
Among the actions already taken, Laís highlighted the tax incentive role of the "Lei do Bem" (Good Law). This law offers tax benefits to companies investing in research, development, and technological innovation (PD&I), covering projects such as improving energy efficiency in metallurgical processes, developing new materials to replace imported inputs, and improving processes to achieve decarbonization. She explained: "The 'Lei do Bem' is an automatically clearing incentive that reduces the actual cost of projects, accelerating those that would be undertaken anyway. Even when the prospect of success is uncertain, it saves expenses and incentivizes the early approval of budgets for potential initiatives." The National Bank for Economic and Social Development (BNDES) and the Funding Authority for Studies and Projects (FINEP) are also seen as other financing options for PD&I projects, applicable to industrial innovation, infrastructure, and sustainability.
Despite the complexity of determining a timeline for the maturation of Brazil's industrial raw material processing, Laís stated that with joint action from businesses and government, the country has the potential to become a global reference by 2050. She emphasized that accelerating decarbonization and green steel production, formulating public policies, and promoting financing are crucial pillars for technological development and reducing imports.
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