At least 20 steelmakers in Brazil suspended operations for 12 hours on Tuesday in a coordinated protest aimed at pressuring the government to implement urgent support measures for the domestic steel industry, Kallanish notes.

The action included 18 companies in Sete Lagoas and surrounding areas in the state of Minas Gerais, as well as two units of Vetorial Siderurgia in Ribas do Rio Pardo and Corumbá in Mato Grosso do Sul.

Operations were halted from 6 a.m. to 6 p.m., resulting in an estimated loss of 2,500 tonnes of pig iron production and financial losses of around BRL 5 million ($885,000).

According to industry participants, the protest was triggered by the government's failure to adopt effective policies to support Brazil’s steel production chain, which has been under increasing pressure from rising imports and declining competitiveness. The pig iron segment has been particularly affected.

“The main goal of the protest is to highlight the challenges the sector is facing, such as prices below production costs, limited access to financing, and little fiscal support,” representatives from the sector state.

The steelmakers are calling for urgent action from the government, including the implementation of safeguards to counter unfair imports, improved access to financing, and fiscal incentives to help restore competitiveness and ensure the sustainability of Brazil’s steel industry.

The sector is warning that without timely intervention, Brazil risks losing a significant share of its industrial base to foreign competition.

Besides pressure from imports, the domestic market is being impacted by changing export dynamics. Over the weekend, US President Donald Trump announced plans to double steel import tariffs to 50% starting in this week. Whilst this measure could benefit Brazil’s pig iron exports by strengthening demand from the US, producers warn it could hurt the domestic steel market.