Brazil Minister 'Doesn't Rule Out' Axing Steel Import Tax

Date : 06/08/2010 @ 6:24PM
Source : Dow Jones News
Stock : Gerdau Ameristeel Corp (GNA)
Quote : 10.99  0.0 (0.00%) @ 2:05AM

Brazil Minister 'Doesn't Rule Out' Axing Steel Import Tax

Gerdau Ameristeel (NYSE:GNA)
Historical Stock Chart

5 Years : From Oct 2012 to Oct 2017

Click Here for more Gerdau Ameristeel Charts.

Brazil's Trade and Industry Minister Miguel Jorge said Tuesday he "doesn't rule out" the possibility of zeroing Brazilian steel import tariffs in a move to dissuade the country's steelmakers from pushing up product prices.

The government has been studying the measure for several weeks, as a way to combat rising inflationary pressures in Brazil, but hasn't yet reached a decision, a ministry spokesman cited Jorge as telling reporters in Brasilia.

So far it hasn't been necessary to implement the measure, which continues to be assessed, Jorge said.

Last week two Brazilian steelmakers, Companhia Siderurgica Nacional (SID, CSNA3 BR), and the Tubarao mill of ArcelorMittal (MT, MT.AE), notified customers of plans to increase steel prices by as much as 10%.

The steel prices come in the wake of announcements that prices for iron ore, the steelmakers' main raw material, will increase by up to 35% on international markets.

Brazilian steel sold on the domestic market can reach prices as much as 40% above international levels, according to key industry analysts.

Steel imports into Brazil surged to 1.8 million metric tons in January-April 2010, up 156% from the same 2009 period, due to cheap international prices and the strengthening of the Brazilian real, according to Brazil's Steel Institute, known as IABr.

Brazil's steel import tariffs stand at around 12% for flat products which use iron ore as a main raw material.

At 5.3%, Brazilian consumer inflation is outstripping the government's 4.5% target for 2010.

-By Diana Kinch, Dow Jones Newswires; 55-21-2586-6086;


Latest GNA Messages

{{bbMessage.M_Alias}} {{bbMessage.MSG_Date}} {{bbMessage.HowLongAgo}} {{bbMessage.MSG_ID}} {{bbMessage.MSG_Subject}}

Loading Messages....

No posts yet, be the first! No {{symbol}} Message Board. Create One! See More Posts on {{symbol}} Message Board See More Message Board Posts

Your Recent History
Gulf Keyst..
FTSE 100
UK Sterlin..
Stocks you've viewed will appear in this box, letting you easily return to quotes you've seen previously.

Register now to create your own custom streaming stock watchlist.

NYSE, AMEX, and ASX quotes are delayed by at least 20 minutes.
All other quotes are delayed by at least 15 minutes unless otherwise stated.