On September 21st, following a public interest analysis, the Brazilian Chamber for Foreign Trade (CAMEX) published Resolution No. 66/2018 suspending the anti-dumping measure applied on imports of small diameter graphite electrodes from China (NCM 8545.11.00 and 3801.10.00). This product is mainly used in the steel industry, for steel refining in electric arc furnaces for the energy carrier systems.
After a broad stakeholders participation, the Brazilian Government decided for the suspension on the basis of public interest elements, such as (i) inadequacy of the anti-dumping measure in force, as the domestic industry ceased production activities for one of the products at issue; (ii) unnecessary tariff protection, as the current import tariff rate is greater than the one applied by the other G20 countries; (iii) modifications on the national supply, as the domestic industry began to impose higher prices and minimum quantities, due to product scarcity and the international market price; (iv) the product essentiality for the steel production; (v) maintenance of the domestic industry, considering the high global demand for electrodes and the ensuing lack of risks of foreclosure or harm to industry; (vi) national and global shortage, resulting in significant price increase; (vii) domestic industry market power, due to the anti-dumping measure and the difficulty of entry of new producers into the global market (concentrated in a few economic groups).
The measure will be suspended for a period of 12 months and may be extended for an equal period. If there is an extension, the suspension shall be definitive. For further details, see the resolution in full.