ArcelorMittal's proposed $900 million expansion of its steelworks at Pecém in Brazil is taking longer than planned, the company's Brazil chief has told Reuters, as cheap imports — largely from Asia — squeeze the project's economics.

Jorge Oliveira, head of ArcelorMittal in Brazil, said the firm is still studying a 5-billion-real ($894 million) investment to add a 1.5-million-metric-ton-a-year hot-rolled coil line at Pecém, in Ceará state. The study no longer has a firm timetable, though a decision could still come by the end of the year.

Study runs over schedule

“The study is taking longer than we imagined,” Oliveira said. Last week ArcelorMittal said the economics behind the project — which would install a hot-strip mill to turn semi-finished slab into higher-value hot-rolled coil — would be disclosed in February.

Imports still near 18% of the market

The potential expansion comes as cheaper imports have increasingly gained market share in Brazil. In September, Oliveira said imports would need to fall below 12% of market share for the Pecém project to make sense. He told Reuters the share was still hovering closer to 18%, well above the roughly 10% pre-pandemic norm, and attributed the cheaper prices abroad to dumping. “Nobody can compete with dumping,” he said.

Brazil has extended steel import controls through the 2026/27 cycle, with a 25% tariff on volumes above quota for covered products. Producers including ArcelorMittal have argued the measures helped slow the rise in imports but are still pressing for broader tariffs and faster anti-dumping investigations. The company has already rerouted product to Europe after the United States raised steel tariffs, though the European Union has since tightened its own import regime. Source: Reuters