The industry's decline is accelerating
Latin American steel production declined by 13 percent between 2021 and 2024, while imported rolled products currently account for a record 40.3 percent of total regional consumption in the first half of 2025. Over the past 15 years, Chinese steel exports to Latin America have grown by 233 percent, while indirect steel exports embedded in finished products have grown by 338 percent between 2008 and 2024.
China's unfair competitive advantage
Alacero stated that steel production in China goes beyond the usual market principles, prioritizing job creation over supply and demand. The country supports interconnected subsidies covering land use, infrastructure, loans, tax breaks, cheap energy, and regulations limiting foreign competition. These subsidies are ten times higher than in OECD countries, which allows China to sell steel products below actual production costs worldwide.
Deindustrialization threatens the regional future
The crisis goes beyond the iron and steel industry, threatening the entire industrial base of Latin America and 1.4 million people.