Latin America’s steel industry warned that it is facing one of the most complex periods in recent years due to the growth of steel imports from China, a phenomenon that has increased competition in regional markets and put pressure on the profitability of local producers.

“The latest report published by Alacero through Margaret Myers indicates that 5% of China’s GDP is allocated to industrial subsidies. That’s more than $900 billion per year, which, to put it in perspective, is roughly equivalent to 50% of Mexico’s Gross Domestic Product,” said Ezequiel Tarvernelli, director of the Latin American Steel Association (Alacero).

In a meeting with the media on the first day of the Alacero Summit 2026 , he mentioned that currently four out of every 10 tons of steel consumed in the region come from imports, mainly from China or re-exported through third countries.

This situation, he said, creates market distortions that affect investment, employment, and the development of high value-added industrial chains.

He mentioned that Latin America has relevant competitive advantages, including availability of raw materials, access to energy, installed technological capacity and specialized personnel; however, he considered it essential that governments promote policies that guarantee equitable competitive conditions against economies that maintain large-scale industrial support programs.

He explained that steel is a strategic input for activities such as construction, vehicle manufacturing, energy infrastructure and industrial projects, so preserving a solid productive base is key to the region’s economic growth.

He simply mentioned that in recent years the Latin American steel industry has maintained important investment programs to modernize plants, increase operational efficiency and advance in decarbonization processes.

Given this scenario, Ezequiel Tarvernelli said that among the measures proposed by the sector are trade defense mechanisms , greater monitoring of imports, as well as industrial policies aimed at strengthening regional supply chains.

They also called for deeper productive integration with North America, given the opportunities arising from nearshoring and the growing demand for manufactured goods in the United States.

Similarly, he pointed out that the challenge is not limited to steel, but involves the competitiveness of sectors ranging from auto parts and machinery to construction and infrastructure.

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El cargo Chinese steel puts pressure on Latin American steelmaking; subsidies are equivalent to half of Mexico’s GDP apareció primero en T21.

More than a year after the section 232 tariffs imposed by the United States government were put in place, the Mexican steel industry continues to face a significant reduction in its exports to that market, although it is seeing signs of recovery driven by support measures for the sector in Mexico.

Sergio de la Maza, president of the National Chamber of the Iron and Steel Industry (Canacero), said that the tariffs have caused a drop of nearly 50% in Mexican steel shipments to that country compared to pre-tax levels.

Although he specified that while exports have begun to recover, the progress has been moderate, with an estimated rebound of between 4 and 6% in volume.

“Our imports fell dramatically, dropping below 50% of what we were sending. And currently they have recovered 4% or 5%, the steel mills in the United States are already at full capacity and we are sending what the American market cannot supply,” he explained.

During a meeting with the media at the Alacero Summit 2026 , he mentioned that the installed capacity of US steel mills is at maximum utilization, so the market continues to require imports to meet its demand.

However, Asian countries, particularly Vietnam, have taken advantage of the situation to increase their share of this market and occupy spaces that were previously supplied by Mexico.

Despite this scenario, the industry remains hopeful that negotiations between the Mexican and U.S. governments will lead to a possible review of the tariffs. While their complete elimination is not necessarily expected, they are confident that tariffs can be reduced to restore conditions for greater access to the U.S. market.

At the same time, industry representatives acknowledged that the actions implemented by the Mexican government have helped stimulate domestic demand for steel, such as the agreement signed in April with the federal government to promote the national market in infrastructure projects, as well as the measures promoted by the Ministry of Economy to strengthen import control mechanisms.

He considered that these actions, added to the projects contemplated within the Mexico Plan, have favored greater domestic demand and a partial recovery of the sector’s activity.

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El cargo Section 232 tariffs continue to hinder Mexican steel exports: Canacero apareció primero en T21.