In conventional neoclassical theory, the density and temperature gradients are not allowed to be as steep as frequently observed in the tokamak edge. In this paper the theory of neoclassical transport in a collisional, impure plasma is extended to allow for steeper profiles than normally assumed. The dynamics of highly charged impurity ions then becomes nonlinear, which affects the transport of all species. As earlier found in the banana regime, when the bulk plasma gradients are large the impurity ions undergo a poloidal redistribution, which reduces their parallel friction with the bulk ions and suppresses the neoclassical ion particle flux. The neoclassical confinement is thus improved in regions with large radial gradients. When the plasma is collisional and the gradients are large, the impurities accumulate on the inboard side of the torus.