Faced with dwindling demand from crisis-hit rich countries, Brazilian steelmakers are pinning their hopes on moves by the government to protect the industry from cut-rate Chinese imports.

Brazil, which ranks ninth among top steel producers, is facing tough competition from world leader China, whose exports are benefiting from the artificially low yuan.

Brazilian Industry Minister Fernando Pimentel said Brasilia might take measures to protect the country from imports, notably through a tax calculated on the basis of the devalued currency of the country of origin.

"This defensive move could be coordinated with the International Monetary Fund or a group of international financial institutions," he said during a meeting of the Latin American Steel Association (Alacero) in Rio last week.

Brazil produces 32.8 million tons of gross steel and 25.9 million tons of rolled products, according to the Acero Brazil Institute.

Last year, the country imported a total of 5.9 million tons of steel products worth $5.5 billion (4.07 billion euros), up nearly 155 percent compared with the previous year.

Imports are forecast to drop to 3.3 million tons in 2012, down nearly 40 percent from this year.

But despite this fall, steel imports in Brazil have grown 400 percent in volume over the past nine years, according to Alacero.

Last year, Brazilian exports rose to 9 millions tons worth $5.8 billion, up 4.1 percent in volume and 22.8 percent in value compared with 2009.

That year, the devaluation of the Brazilian currency helped bring down imports as the price of domestic steel drew closer to that foreign steel, according to Marco Pollo de Mello Lopes, the president of the Acero Brasil Institute.

Concerned about the economic slowdown in Europe resulting from the sovereign debt crisis, President Dilma Rousseff's government no longer counts on Europe to help boost its exports in 2012 and is looking for alternative markets.

"Africa, mainly South Africa, is experiencing a boom in the construction sector, a traditional consumer of steel, and would be a good market for Brazilian production," said Marcos Crivalaro, a financial consultant.

"We also hope to see am increase of sales within South America, mainly through car production and the construction sector. Southeast Asia and Australia can also be good alternatives," he added.