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| Usiminas |
Brazilian steelmaker urges government action against unfair steel imports
Brazil’s Usiminas has posted robust results for the first quarter of 2025, delivering figures well above market expectations. However, the company warned of a turbulent road ahead due to unfair import practices, elevated interest rates, and international trade uncertainty—factors that continue to weigh on Latin America’s steel sector.
Q1 profit surges 845% year-on-year
In its latest earnings report, Usiminas announced a net profit of 337 million reais ($59.08 million) for Q1 2025, a staggering 845% increase from the same period last year. The result also significantly surpassed the 225.02 million reais forecasted by analysts in an LSEG survey.
Steel sales reached 1.09 million metric tons, marking a 5% increase year-on-year, while iron ore sales rose 13% to 2.11 million tons. The company expects these volumes to remain stable into the second quarter.
Rising imports and high rates challenge domestic producers
Despite the strong quarter, Usiminas expressed growing concern about the second half of 2025. In a securities filing, the company cited a difficult outlook shaped by three core risks:
- Surging imports under unfair conditions,
- Suppressed domestic demand from high interest rates, and
- Ongoing trade tensions affecting global steel markets.
Usiminas renewed calls for government intervention, particularly to address what it describes as unfair competition from Chinese steel imports. Domestic producers in Brazil have long criticized the flood of low-cost steel entering the market, arguing it distorts prices and undermines local industry.
With global markets still unsettled by protectionist policies and economic uncertainty, Usiminas’ plea underscores the broader challenge faced by emerging-market steelmakers in navigating a complex international landscape.
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