ArcelorMittal Delays 894 Million Dollar Brazil Mill Expansion

ArcelorMittal is delaying a proposed 5-billion-real ($894 million) expansion of its steel mill in Pecem, Ceara state, Brazil. The project intended to add a hot-rolled coil line with an annual capacity of 1.5 million metric tons to convert semi-finished slab into higher-value steel.

Jorge Oliveira, head of ArcelorMittal in Brazil, stated that the evaluation study is taking longer than expected as the company explores new mill processes and assesses the impact of cheap Asian imports. Oliveira noted that imports currently hold approximately 18% of the market share, exceeding the 12% threshold he previously identified as the limit for the project's economic viability.

While the Brazilian government extended steel import controls through the 2026/27 cycle with a 25% tariff on over-quota volumes, ArcelorMittal continues to advocate for broader tariffs. The company is calling for faster anti-dumping investigations to combat artificially depressed global prices.