Latin American Steel Market Warned Over Risks of Unfair Competition and Overcapacity
The annual crude steel output by the region is expected to touch 66.3 million tons in 2018, marginally higher by 3.2% over the previous year.
SEATTLE (Scrap Monster): The 59th Latin America Steel Conference highlighted the risks faced by the regional steel industry on account of rising imports, especially from China and Turkey.
The meeting noted that unfair imports have continued to impact the growth of steel industry in the region, even in the midst of recovery during the past couple of years. Meantime, estimates indicate that the regional crude steel production is expected to report slight increase in 2018. The annual crude steel output by the region is expected to touch 66.3 million tons in 2018, marginally higher by 3.2% over the previous year.
Francisco Leal, General Director, Alacero, identified added global capacity woes and the imposition of hefty duty by the U.S. as the two key factors that impede the growth of steel industry in the Latin American region. Of late, the region is witnessing increased imports of steel products not only from China, but also from Turkey and other Asian countries.
According to Jefferson de Paula, President, Alacero, many countries in the region, especially Argentina, Brazil and Mexico reported uncertainties-both on political and economic fronts. This has resulted in slower economic activity in the region. Despite all these, the region is heading to a second straight year of recovery, he said. Based on possibilities of economic recovery and political stability in the region, Alacero foresees 2% growth in the region in 2019. Paula also highlighted the significance of trade defense measures in order to safeguard regional market competitiveness.