Steel producers hail Mexico's efforts to boost industry but say Argentina, Brazil lag
MEXICO CITY, Oct 31 (Reuters) -Mexico is on the right path to develop its steel industry but Argentina and Brazil are still falling short of their potential, top officials of three regional producers said.
WHY IT MATTERS
The steelmakers - Ternium, Gerdau, and the Brazil unit of ArcelorMittal - have long complained of an unfair playing field in the region, saying China engages in "dumping," or flooding markets with material sold below market value.
In recent months, Mexico has slapped tariffs on some steel imports and rolled out a program to track products' country of origin, as producers say China ships steel through third countries before it reaches Mexico.
CONTEXT
Latin America has huge potential to grow in steel demand, said Jefferson de Paula, head of ArcelorMittal Brasil. However, political and economic instability, as well as Chinese imports of steel and finished products, pose headwinds, he said.
Governments have also been slow to adopt measures to combat dumping practices, said Gustavo Werneck, chief executive of Brazilian steelmaker Gerdau. This month, Brazil rolled out some 25% import tariffs.
WHAT'S NEXT
Mexican President Claudia Sheinbaum, who took office at the beginning of October, has laid out a plan to work with industry, said Maximo Vedoya, CEO of steelmaker Ternium.
The country is also taking advantage of a supply chain shift, he added, referring to a trend known as "nearshoring."
Brazil, however, is no longer the industrial powerhouse it once was, he cautioned. "Brazil has the ability to enter the Americas' supply chain, with all the capacity it has," Vedoya said. "But it's far from benefiting from this regionalization phenomenon."
Argentina must sort out its macroeconomic situation before rolling out industrial policy, Vedoya added. "Argentina has distorted costs for everything - taxes, labor, regulations," he said. "If we want to have industry, we need to make it more competitive."
KEY QUOTES
"The United States is leading the way (in measures to combat Chinese steel)," Vedoya said. "Europe is next, India, Mexico. Brazil is taking the first steps. The rest of Latin America should follow."
Werneck said, "We (steelmakers in Latin America) are not asking for any type of special treatment. We're asking for an even playing field."
BY THE NUMBERS
Global steel consumption is about 223 kg (492 lbs) per person, de Paula said. In Latin America, that number is less than half.
Steel imports to Latin America leaped 14% in 2023, while consumption was up just 5% from the previous year, data from regional steel association Alacero shows.
Reporting by Kylie Madry; Editing by Aida Pelaez-Fernandez and Clarence Fernandez
Berita Terkini
Penafian: Entiti XM Group menyediakan perkhidmatan pelaksanaan sahaja dan akses ke Kemudahan Dagangan Atas Talian, yang membolehkan sesorang melihat dan/atau menggunakan kandungan yang ada di dalam atau melalui laman web, tidak bertujuan untuk mengubah atau memperluas, juga tidak mengubah atau mengembangkannya. Akses dan penggunaan tersebut tertakluk kepada: (i) Terma dan Syarat; (ii) Amaran Risiko; dan Penafian Penuh. Oleh itu, kandungan sedemikian disediakan tidak lebih dari sekadar maklumat umum. Terutamanya, perlu diketahui bahawa kandungan Kemudahan Dagangan Atas Talian bukan permintaan, atau tawaran untuk melakukan transaksi dalam pasaran kewangan. Berdagang dalam mana-mana pasaran kewangan melibatkan tahap risiko yang besar terhadap modal anda.
Semua bahan yang diterbitkan di Kemudahan Dagangan Atas Talian kami bertujuan hanya untuk tujuan pendidikan/maklumat dan tidak mengandungi – dan tidak boleh dianggap mengandungi nasihat kewangan, cukai pelaburan atau dagangan dan cadangan, atau rekod harga dagangan kami, atau tawaran, atau permintaan untuk suatu transaksi dalam sebarang instrumen kewangan atau promosi kewangan yang tidak diminta kepada anda.
Sebarang kandungan pihak ketiga serta kandungan yang disediakan oleh XM, seperti pendapat, berita, penyelidikan, analisis, harga, maklumat lain atau pautan ke laman web pihak ketiga yang terdapat dalam laman web ini disediakan berdasarkan "seadanya" sebagai ulasan pasaran umum dan bukanlah nasihat pelaburan. Sesuai dengan apa-apa kandungan yang ditafsir sebagai penyelidikan pelaburan, anda mestilah ambil perhatian dan menerima bahawa kandungan tersebut tidak bertujuan dan tidak sediakan berdasarkan keperluan undang-undang yang direka untuk mempromosikan penyelidikan pelaburan bebas dan oleh itu, ia dianggap sebagai komunikasi pemasaran di bawah peraturan dan undang-undang yang berkaitan. SIla pastikan bahawa anda telah membaca dan memahami Notifikasi mengenai Penyelidikan Pelaburan Bukan Bebas dan Amaran Risiko mengenai maklumat di atas yang boleh diakses di sini.