US steel lobby urges Trump to block sale of Brazil nickel assets to China

AISI presses Washington to intervene as China’s MMG seeks $500 million acquisition of nickel assets

Aug 25, 2025 4:32 PM

By Brazil Stock Guide – The American Iron and Steel Institute (AISI) has asked the administration of U.S. President Donald Trump to pressure Brazil over Anglo American Plc (AAL LN)’s agreement to sell its nickel operations in Goiás to China-backed MMG Ltd. (1208 HK). The request, reported by Valor Econômico, comes amid intensifying competition over critical minerals.

In a letter to the Office of the U.S. Trade Representative (USTR), the AISI warned that the deal would hand Beijing greater control over nickel supplies, already concentrated in Indonesia, Brazil, and Australia. “It is essential that the government of Brazil explore alternatives that preserve market-oriented ownership of these strategic nickel assets and ensure that future access to this critical mineral remains open and fair,” wrote Kevin M. Dempsey, AISI president.

The proposed sale, announced in February, covers Anglo’s Barro Alto and Codemin ferronickel plants, as well as two undeveloped projects. The package is valued at up to $500 million, with closing expected in the third quarter of this year. MMG is majority controlled by China Minmetals Corp., a state-owned enterprise.

Nickel is a vital component of stainless steel production, accounting for about 65% of demand, according to AISI. The group argues that China already wields significant leverage in global supply chains thanks to heavy investment in Indonesia. Anglo American’s Brazilian units produced about 40,000 metric tons of nickel in 2023, with integrated mining and refining facilities.

The USTR is currently conducting a review of Brazilian trade practices that could lead to broader sanctions. In its submission, AISI said U.S. stainless steel producers see the Anglo-MMG deal as “an effort by China to further strengthen its control over global nickel supplies,” highlighting what it calls “market-distorting policies and practices” by Beijing, including subsidies and export restrictions.

Meanwhile, the deal faces scrutiny in Brazil and Europe. The Administrative Council for Economic Defense (Cade) in Brazil and the European Commission are set to review the sale after Dutch rival Corex Holding BV claimed it submitted a higher bid and accused Anglo of questionable negotiations and creating market concentration.