LatAm steel is facing a growing import threat
Latin American producers have become concerned that the region is becoming an influx of excess steel, displaced by U.
S. Article 232 tariffs, European quota restrictions, and persistent oversupply in China.
Manufacturers at the Alacero Summit in 2025 called on governments to adopt coordinated trade protection mechanisms to protect the region. The event brought together metallurgists from all over the region and focused on efforts to curb the growth of Chinese steel production.
"If governments create a level playing field for us, we can win the game," said Ezequiel Tavernelli, executive director of Alacero, during the association's summit in Cartagena, Colombia, in 2025. mid-November.
Piecemeal protections will only leave loopholes for further foreign steel penetration into Latin America, undermining local industries and jobs, executives said.
The U.
S. decision to raise tariffs on imported steel to 50% this year has pushed exporters, especially in Asia, to seek markets with weaker trade protections. Europe and some Asian countries such as Vietnam have strengthened their defenses with tariffs and anti-dumping duties, while the EU has reduced import quotas and imposed clean production requirements. As a result, excess steel is flowing to Latin America, where manufacturers warn that a sharp increase in production could trigger deindustrialization and job losses.
"The more measures other countries take, the greater the risk that excess steel will flood our markets." This was stated by the president of the Colombian Steel Chamber, Marcela Mejia. "The more than 40-month drop in prices is due to imports at unfair prices."
Steel production in Latin America has been trending downward for 15 years, dropping to 50 million tons in 2025 from 67 million tons in 2010, according to Alacero data. Crude steel production in Brazil, the leading steel producer in the region, decreased by 1.8% to 28 million tons in October compared to the same period last year. Production in Mexico has decreased by 9% to 12.6 million tons since the beginning of the year.
. At the same time, Chinese steel imports to Latin America increased to 14 million tons in 2024, which is more than three times more than in 2010, Alacero said.
Global steel production overcapacity reached 619 million tons in 2024 and is expected to rise to 721 million tons by 2027, with China alone accounting for 45% of this surplus, OECD economist Anthony de Carvalho said during the summit in Alacero.
Per capita consumption in Latin America remains at the same level. It remains unchanged at about 110 kg, which is almost half the global average of 213 kg. This structural