According to Jefferson De Paula, the president of Alacero, trade defense measures will be crucial as Latin America aims to raise steel production and consumption rates.
“These actions are fundamental to restore the competitiveness of our regional market,” De Paula said in a statement ahead of the 59th annual Alacero conference held this week in Cartagena de Indias, Colombia.
The statement from Alacero said that despite a moderate recovery that began last year and maintained in this year of 2018, it is “extremely important” to combat the market distortions caused especially by China.
“Global and regional industry continues to be strongly affected by excess installed capacity in the world and China is the biggest contributor to this factor. The Chinese steel industry continues to be a non-market economy, benefiting from subsidies and affecting competitive conditions in the global marketplace,” De Paula said.
In this context, Latin American steel companies face “fair play” when competing against Chinese companies and their governments that flood the continent with steel that is dumping, according to Alacero.
The association noted Colombia as one of the countries most affected by Chinese imports. Last year imports accounted for 17 percent of consumption and in the period between January and March 2018, 13 percent. Consumption decreased in the rest of the main countries importing from China, with the exception was Brazil, where import participation with China increased from 4.5 percent in 2017 to 5.5 percent between January and March 2018.
“More than ever, we are committed to actions that increase our competitiveness. As far as Alacero is concerned, let us stand firm in our efforts to combat unfair trade, especially Chinese products. Forty-four of the 66 anti-dumping or steel-related safeguards actions in Latin America are against China,” De Paula said.
Alacero’s president also highlighted other battle fronts, such as the joint efforts of Alacero and national associations with their respective governments to also stimulate the flow of business between the countries of the continent, and seize the moment of economic recovery to solve historical and common problems between the countries of the region, especially with regard to infrastructure.