Latin Steelmakers See Opportunity to Replace Cheap China Imports
- Alacero’s Wagner calls for tax relief, red-tape streamlining
- Wagner sees steel prices near current levels rest of the year
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Blast furnaces from Mexico to Argentina want to mitigate Latin America’s increasing dependence on Chinese steel, and a push by the Asian giant to clean up its own industry could be just the catalyst.
As output from China’s vast steel sector soars, Beijing is looking to temper the market via pollution controls and capacity cuts. Eventually, those policies could open the door for Latin American producers such as Ternium SA and Gerdau SA to substitute imports that account for more than a third of the region’s supplies, according to Alejandro Wagner, the new head of Latin American steel association Alacero.