ArcelorMittal plans R$10 billion investment in Brazil

ArcelorMittal, the global steelmaker controlled by the Indian Mittal family, is planning an investment cycle exceeding R$10 billion in Brazil. This move is driven by a decline in Chinese steel imports following trade defense measures implemented by the Brazilian government.

Brazil has introduced anti-dumping duties on specific Chinese products, including cold-rolled flat steel and certain coated flat steel products. Consequently, the share of imported steel in Brazil’s domestic market has dropped from approximately 25% to 16%. ArcelorMittal Brazil President Jorge Oliveira stated the company views a 10% import level as more appropriate.

Key planned projects include:

• An investment of R$4 billion to R$5 billion at the Tubarão unit in Espírito Santo to establish a Cold Strip Mill and a Continuous Coating Line for the automotive, construction, and home appliance sectors.

• A potential R$5 billion investment to expand the Pecém plant in Ceará with a new hot-rolled coil production line.

A final investment decision is expected by the end of 2026. Despite the favorable market shifts, the company noted challenges such as high energy and natural gas costs, alongside the broader ‘Cost of Brazil’ affecting competitiveness.