After announcing the suspension of its steel production, the Chilean producer Companhia Siderurgica Huachipato (CSH) has adopted a three month period to conclude the stoppage.
During this period, the company could interrupt the process, if the government accepts the increase, from 15 to 25 percent, of tax for the import of Chinese steel products, at alleged dumping prices.
Local sources mentioned that the plant’s steel production is gradually declining, since the stoppage of its wire rod rolling mill, while the negotiations with the authorities are maintained.
This week, Huachipato has a new general manager, Jean Paul Saure Roeckel, who will oversee the gradual process of reducing the steel production.
According to the local press, the company claims that under the current level of prices, dictated by the competition from the Chinese products, the plant is losing the equivalent to $1.0 million per day, rendering its operation not feasible in the short time.