Trade Bodies Cautions About the Critical State of LatAm Steel Industry

SEATTLE (Scrap Monster): The Latin American Steel Association (Alacero) and the National Chamber of the Iron and Steel Industry of Mexico (Canacero) recently hosted an event called "Unfair Trade and its impact on Latin America," which brought attention to the dire situation of the region's steel sector. Prominent government officials and leading industry professionals attended the event, which took place in Monterrey, Mexico during the first week of May.

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De Carvalho, the head of the Organization for Economic Cooperation and Development's steel unit, claims that the growing global overcapacity and market distortions brought on by China's much higher subsidies have put the Latin American steel industry in a dire situation. He cautioned that by 2027, the world's overcapacity is expected to reach 721 million tons, which might have an effect on small and medium-sized businesses worldwide.

The meeting expressed concerns over huge quantities of Chinese steel entering Latin American region. As per figure, China exported more than 110 million tons of finished and semi-finished steel during the previous year, of which nearly 14.2 million were to Latin American markets.