BackYou are here  :  Home - News - Industry News

Steel import up by 65pct in 2013-14 from China - LatAm steel industry

The Latin American Steel Association, known as Alacero, said that Steel imports from China increased 65% in 2013-2014, posing a threat to the industry in the region.

Mr Rafael Rubio president of Alacero in a statement said that "Our main concern is that these imports arrive under conditions of unfair competition that can be observed in the average price of Chinese products coming to Latin America, which is 14% lower than prices for the rest of the world."

Mr Rubio said that the situation is even worse in Central America, where the average price of Chinese steel imports is 20% below world prices.

He said that "Latin American steelmakers are able to compete with Chinese companies under fair terms, but not when these companies have unlimited financial support from their government, which is the majority owner of those enterprises."

He added that besides benefiting from subsidies, China's state companies resort to tactics such as dumping - selling below cost - to grab market share from domestic producers in export-destination countries, according to Rubio.

He further added that the Chinese government gives its companies an unfair advantage by supplying necessary infrastructure at no cost to the firms and providing subsidies in the form of below-market prices for inputs such as electricity and coal.