LatAm Steel Trade Hit Hard by Uncurbed Chinese Steel Imports

SEATTLE (Scrap Monster): The Latin American Steel Association (Alacero) highlighted the need for local governments in the region to exercise greater commercial control over imports of steel products from other countries, especially from those in the Asian region. The pressure from unfair steel trade has led to uncertainties in the region.

During the previous year, the region reported 3.5% surge in indirect steel trade from China. The trade was valued at $49,154 million. The volume of steel in products that entered from China witnessed a rise of 3% over the previous year. Brazil and Mexico turned out to be the major consumers of indirect steel imports from China, accounted for 57% of the imported steel by value.

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The primary regional market destinations of imported rolled steel and derived products from China were Chile, Peru, Central America and Brazil.

The overall imports accounted for 35% of the Latin American steel consumption during the previous year, out of which China accounted for 25%.

Commenting on the market situation, Francisco Leal, General Director, Alacero recommended that increased investment in local infrastructure will boost the production, which in turn will enhance the representation of domestic steel in overall regional consumption. The Chinese low-cost production is expected to return to full swing post-Covid-19 pandemic, he added.