"Latin America drowning in Chinese Steel"

The Alacero Association, representing the steel industry in Latin America, sounded the alarm on March 20: LATAM finds itself engulfed in a flood of Chinese steel, posing a significant threat to the region's industrial landscape. In the past year, steel imports from China have grown by 45%, reaching a record high. This has devastated local steel producers, unable to keep pace with China's low prices.

The problem: 'Unfair competition from China'

Over the past two decades, China has emerged as the world's largest steel producer, escalating its share from 15% in 2000 to a staggering 54% by 2023. In contrast, Latin America has only seen a modest 4% increase in production since 2000 - China has surged ahead by a staggering 693%.
At the root of the problem, according to Alacero, is the fact that China's steel industry benefits from huge government subsidies that allow it to sell steel at artificially low prices on the global market. This creates an unfair playing field for Latin American producers who wrestle with these unsustainably priced imports.

The toll on Latin America

Latin America now faces dire consequences as its steel producers struggle to compete with China's exports. Operations are being suspended, thousands of workers have been laid off, and plants are forced to shutter. China's lax adherence to quality and environmental standards also raises environmental concerns.

A call to action: protecting the LATAM steel industry

Alacero urges local governments to intervene with robust trade defense measures. These actions are vital - says the association - to safeguard the livelihoods of over 1.4 million workers and protect an industry that drives socio-economic development and fosters quality employment opportunities.
Alacero proposes following the lead of major markets like the United States, Europe, and Mexico by raising tariffs on steel imports. Additionally, collaborative efforts and a unified regional approach are imperative to enhance systemic competitiveness and present a stronger voice in the global market.

Recent data confirm the severity of the situation. In 2023, Latin America witnessed a 3.9% decline in steel production, sounding the alarm for the industry's economic health.

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In the picture, the USIMINAS facility in Ipatinga, Brazil