On 22nd December 2021, the official gazette of the government of the largest country in South America and Latin America, Brazil notified that it has sanctioned a duty-free import quota for non-alloyed aluminium of 350,000 tonnes for 2022.
However, on 21st December a conclusive decision was drawn by the executive management committee (Gecex) of Brazil’s foreign trade chamber (Camex), a part of the Ministry of Economy, Govt. of Brazil.
Following the inflow of 350,000 tonnes of P1020 aluminium into the nation exhausting the duty-free import quota, the remaining import will be levied with a 5.4% import duty.
In recent past, the Brazilian aluminium industry associates market participants overhear that the import quota could be as around 230,000-260,000 tonnes, as the overall anticipation was for diminished volumes compared with 2021, particularly due to leading aluminium producer Alcoa Corporation has tooled up on a project to restart an idled aluminium smelter in Brazil following the hike in aluminium prices to a 13-year high and Chinese output reduction.
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