Trade Body Highlights Enormous Risks Faced by LatAm Steel Industry

SEATTLE (Scrap Monster): The Latin American Steel Association (Alacero) issued warning about the risks faced by the region’s steel industry. Furthermore, it highlighted the importance of strengthening domestic production capabilities.

The Association urged the governments to take appropriate actions to safeguard the industry from rising unfair trade, thereby ensuring equal opportunities for regional industry to compete with the world. In response, Mexico has decided to begin monitoring of imports of certain line pipe products from the U.S. Also, Chile has decided to initiate an investigation into dumping of forged steel balls and steel bars.

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Francisco Leal, General Director of Alacero called upon the need for leaders in the region to unite in the fight against unfair imports, especially from China. Such an action could create equal competitive opportunities for local industry and generate quality jobs, he added.

The Association noted that steel demand in the region during the pandemic crisis has witnessed the largest drop since the global financial crisis. The demand decline has further escalated the global overcapacity worries. Surprisingly, China has continued to increase its steel production even during the pandemic period.

Alacero stated that the regional steel production resulted in lower carbon dioxide emissions, compared to world average.