Speaking at the Alacero Summit 2025 conference, Daniel Rey Suárez, director of the Steel Producers Chamber of the National Association of Entrepreneurs in Colombia (ANDI) outlined the recent hardships Colombian producers have been facing.
According to local media reports, Suárez has stated that Colombia’s steel industry is challenged on two major fronts. The first issue is pricing: the market is flooded with artificially low-priced imports from China, Russia and Turkey, countries whose steelmakers benefit from heavy state subsidies, enabling them to sell below cost. These low prices pull down market benchmarks, making it increasingly difficult for Colombian producers to compete. The second issue is volume. The construction sector, traditionally the strongest driver of steel demand, has been contracting and following several years of 18 percent interest rates and high inflation, construction project starts have fallen sharply. As a result, national steel consumption has weakened considerably.
Import price pressure now the core threat
Depending on the product category, steel imports cover five percent to 45 percent of Colombia’s total demand. Rey Suárez emphasized that the price, rather than the sheer volume, poses the greatest threat. Import prices have become the benchmark for domestic transactions, pulling down market levels and leaving local mills unable to compete sustainably.
Call for trade defense measures
With market conditions deteriorating, companies have begun adjusting work shifts, reducing operating hours and reassessing production lines. Mills are currently operating at just 62-64 percent of installed capacity, increasing the risk of further job losses and industrial contraction.
Given the deepening price crisis, Rey Suárez noted that Colombian industry leaders are working with the government to implement trade defense measures. The goal is to counteract the distortionary effects of subsidized steel entering from China, Russia and Turkey. “We are waiting for these measures to be implemented soon because the price crisis is getting worse. If this continues, we will have to take stronger measures,” he warned.