ALACERO Highlights Disadvantages of LatAm Steel Sector

SEATTLE (Scrap Monster): The Latin American Steel Association (ALACERO) published results of the Asymmetry Study commissioned by it to carry out a comparative analysis of the situation in region’s countries including Argentina, Brazil, Colombia and Mexico with competitors in Asia such as South Korea, India, Vietnam and China. As per the findings of the study, the LatAm steel sector continues to be at great disadvantage upon comparison with Asia.

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The production level of the Latin American manufacturing industry recorded decline by up to 6% between 2010 and 2018, whereas it reported 1.5% increase in Asia during the same period. The study found that salaries are higher by 86% in Mexico, 70% in Argentina, 55% in Brazil and 41% in Colombia, when compared with the average wages of the global manufacturing industry. Also, the tax burden in Latin America stood at 31.8% in 2020, as compared with 25% in Asia.

Although Latin America is at a disadvantage in relation to certain variables, it continues to be one of the regions with the cleanest production of steel per ton sustainable across the globe. The steel industry in the region continues to function as one of the main economic engines, said Alejandro Wagner, Executive Director, Alacero.