Alacero, the Latin American steel association, has called for local governments to restrict scrap exports as a way to help reactivate the region’s economic growth.
The association said this week that China is expected to increase its scrap consumption as it shifts more steel output to an EAF model. Such a change should generate “distortions” in the emerging markets, including Latin America, which depends on scrap as a key raw material for steelmaking, Alacero said.
Alacero said that limiting or imposing export quotas on scrap is one of the “key measures” to avoid the negative impacts of China’s new steel production route. The association mentioned that Colombia imposed a scrap export quota to avoid a lack of the product in the nation’s domestic market.
The Latin American steel association said it is “very recommendable that (governments) adopt measures to exert a bigger control over the exports of such material.”
“This is the time for us to unite as a region to boost a reactivation of the economy growth that is based on domestic consumption and an incentive to quality jobs,” said Francisco Leal, director general at Alacero.