Brazilian Nickel rejects barrier to Asian nickel and advocates free trade
Amid the debate on trade defense measures against Asian products, Brazilian Nickel defends that Brazil does not adopt barriers to restrict the entry of nickel imported from Asian countries. For the company, which is developing a US$1.4 billion project in Piauí, the path to strengthening the national industry involves reforms that increase the country's competitiveness and not protectionist measures.
The position contrasts with that defended by the Brazilian industry. In recent years, sectors such as the steel industry have pressured the federal government for protection mechanisms in the face of the increase in imports, especially from China. Companies argue that the increasing entry of foreign products has reduced the competitiveness of national production.
In the nickel market, the scenario is marked by a strong global oversupply, caused mainly by the expansion of production capacity in Indonesia. Excess production brought down international prices and fueled discussions about possible unfair competition practices and trade route deviations involving Asian markets.
Despite this context, the financial director of Brazilian Nickel, André Simão, stated that he does not see protectionism as a solution to the challenges faced by the Brazilian industry.
"I am a supporter of free trade and I don't think protectionism is a solution. We need structural reforms to make our market more competitive in relation to the global market", he said in an interview with CNN's Mapa da Mina program.
Diversion of route is an opportunity
The executive also minimized concerns related to the so-called deviation of route for Indonesian nickel. According to market agents, part of Indonesia's production passes through other countries, especially China, before reaching consumer markets.
For Simão, the presence of this material on the European market mainly reflects the lack of competitive supply from alternative producers, and not a problem that should be addressed through trade barriers.
In the company's assessment, the situation could represent an opportunity for new projects outside Asia. The expectation is that Brazilian producers will be able to gain space as they increase their capacity to supply nickel with quality, traceability and competitive prices.
"At the moment we are able to supply nickel in the way we operate and with the quality that has already been proven, we will gradually make up for this diversion of route and this consumption that is made via Indonesia", he stated.
Brazilian Nickel's position comes at a time when governments and companies from different countries are discussing ways to reduce dependence on supply chains concentrated in Asia for minerals considered strategic for the energy transition. While part of the industry defends trade protection mechanisms, the company is betting that increased competitiveness will be enough to open up space for Brazilian production in the international market.
Source: CNN