According to a new study issued by the Latin American steel association Alacero analyzing the situation in Latin America in relation to indirect steel trade, namely, the exchange of manufactured steel-containing goods, manufacturing activity for steel-containing goods in the region is concentrated in a few countries and is threatened by massive imports (mainly from China) that arrive - in many cases - under unfair practices and supported by subsidies.
Between 2000 and 2010, the share of Chinese steel-containing goods in Latin America's imports increased from two percent to 20 percent. The study also describes Latin America as a net importer of indirect steel trade goods. Between 2000 and 2010, imports increased by 2.3 times, while exports were less dynamic, rising by 1.9 times. In 2010, the trade deficit peaked at $71.2 billion.
According to Alacero, the automotive sector accounts for 56 percent of exports of steel-containing goods. Between 2000 and 2012, automotive exports grew at an average annual rate of eight percent and reached a steel equivalent volume of 7.1 million mt at the end of the decade.