In order to cut steel overcapacity in China and circumvent trade sanctions imposed on Chinese steel products, China is planning to transfer 10 million mt of steel capacity to Brazil, with several large-scale steel enterprises in China having expressed their interest in the project, according to the World Steel Association (worldsteel).
In the first phase of the project, some large Chinese steel companies will come together and build steel production capacity of 3 million mt in Brazil. According to worldsteel, the project is supported by the Brazilian government with the purpose of boosting the economy and increasing jobs in the country, while the project is also expected to meet steel demand in Brazil, South America and North America.