ALACERO Demands Strict Controls on Scrap Export by LatAm Countries

SEATTLE (Scrap Monster): The Latin American Steel Association (ALACERO) called upon local governments in the region to put controls on scrap exports towards ensuring the region’s economic growth.

According to a latest press release, the shift in steel production from blast furnaces to electric furnaces by China will boost the consumption of scrap in that region. The scrap consumption by the Asian country is expected to grow exponentially in the coming years. This in turn will create distortion in global emerging markets including those in Latin America, which uses scrap as the primary steelmaking raw material. It must be noted that China had accounted for almost 57% of the global steel production in 2020.

RELATED NEWS:

LatAm Crude Steel Output Dipped in 2020

Steel Output Boost to Propel LatAm Industry Revival

The projected huge infrastructure and construction projects in Latin America, on the back of strong GDP growth, will mean huge volumes of steel in use. This will lift the need for more scrap.

In order to ensure sufficient local availability of scrap material, the countries in the region must resort to restrict exports of scrap. The region reportedly faces notable deficit in scrap. Last year, Colombia had enacted a decree, proposing control measures on scrap exports, which has helped the country restore its normal steel production level.