Brazil Metallurgical Coal Reliance

Brazil, the 9th largest steel producer globally, relies heavily on U.S. metallurgical coal- a critical input for producing semi-finished steel. Imports of U.S. metallurgical coal to Brazil reached $1.2 billion in 2024, positioning Brazil as the third-largest global importer of this resource. This two-way trade highlights the strategic interdependence between the two nations, where U.S. metallurgical coal fuels Brazil’s steel production, and Brazilian steel supports U.S. industries. Trade measures affecting imported steel have not curbed Brazil’s appetite for U.S. metallurgic coal, creating significant opportunities for U.S. companies within Brazil’s steel supply chain. 

Metallurgical coal imports from the United States are highly valued, as Brazil’s domestic coal is of insufficient quality for steelmaking. In contrast, U.S. metallurgical coal offers high carbon content and low sulfur, essential for producing high-grade steel. The United States also provides efficient logistics, stable supply chains, and competitive freight rates to Brazilian ports, making it a preferred supplier. As Brazil’s integrated steel plants were designed to operate with imported coal, substituting domestic sources is technically and economically unfeasible. Consequently, Brazil’s steel exports remain closely tied to U.S. coal imports, as alternative suppliers like Australia face higher costs and logistical challenges, further strengthening the U.S. position through long-term contracts and value-added services such as customized logistics and technical support.

Additional opportunities exist in joint ventures, advanced equipment, and technologies that can enhance Brazil’s steel production efficiency. By integrating these services, U.S. firms can stand out from competitors and establish lasting partnerships.

For more information on opportunities for U.S. companies, please contact Tulio Ferreira Tulio.Ferreira@trade.gov, Mining Equipment and Machinery Commercial Specialist, U.S. Commercial Service, Belo Horizonte.