As one of China’s top destinations for steel exports, Latin America still needs to organize itself as a region so it can stand up to the competition with imported steel, an executive from Alacero, the region’s steel association, said this week during a conference held in Buenos Aires, Argentina, from November 10-11.
According to Martin Berardi, president of Alacero, one of the trade group’s main issues for 2016 is the integration of the Latin American markets, along with the region’s reindustrialization.
“Trade between Latin American countries is declining against the increase of steel imports from China,” Berardi said, while saying local trade blocs, such as the Mercosur and the Trans-Pacific Partnership (TPP), lose space and strength.
“A more integrated Latin America means a less volatile one,” the executive noted. “But we’re not taking this path,” he added.
Alacero said China should export 8.9 million mt of steel to Latin America by the end of 2015, down from 9.1 million mt last year, but well above 2013’s 6.2 million mt import volume.
As for duties on Chinese and foreign steel, Berardi said this is a discussion that needs to “advance” in the region.
As of now, Latin America has 43 AD cases currently in place, of which 28 are against China. Out from this total, Mexico has some 23 cases currently in place, of which 13 are against China. There are other 12 cases, which are currently being processed, and could result in provisional or definite duties. Out of this total, nine are against China.
“We need to have a public-private articulation. We should get back to the regional integration and jointly negotiate with other trade blocs. There’s potential in Latin America. We have the resources, we have feedstock, and there are lots of needs to be addressed, including infrastructure issues,” Berardi said.