Latin American production falls due to the growth of Chinese imports

According to Benjamin Baptist, the President of Alacero, the production of steel in Latin America continues to decline in 2013 for the second year in a row, against the backdrop of the growth of cheap imports from China. According to the data presented by Alacero, the regional government should suppress Chinese dumping to stimulate investment in expanding steel factories.

Latin America, which accounts for 4 percent of world production, is planned to melt 64.9 million tons this year, which indicates a fall by 1 percent compared to 2012.

The Baptist said in an interview with the annual Alacero conference in lima that “Latin American production has not grown, even if there is demand, and the deficiency is covered by imports, mainly from China, conducting a non -proper trade practice such as dumping and subsidies. This is more expensive than putting steel from Minas-Jirace to San Paulo than to bring a whole ship from China. ”

Latin American manufacturers became led by Brazil, Mexico and Argentina an average of 80 percent of the installed capacity, so that unused capacities make it possible to cope with any increase in demand, according to the Baptist.

Steel prices are “under pressure” from an excess of global production capacity. The regional government should develop a protectionism policy for local industry and invest more funds in the railway, automobile and port infrastructure to reduce transportation costs and help expand steel plants, Baptist explained.