China’s overcapacity in steel production and trade practices that distort international markets are one of the main challenges for the steel industry in Latin America , making it necessary to strengthen trade defense mechanisms and promote a regional competitiveness agenda.

This was stated by Máximo Vedoya, president of the Latin American Steel Association (Alacero) , who highlighted that China went from representing 3% to around 35% of global manufacturing , while its share of world consumption is close to 12 percent.

This difference, said the CEO of Ternium during the opening of Alacero Summit 2026 , demonstrates the scale of its export capacity and the impact it has on the markets.

“ China’s production levels far exceed its domestic demand and distort prices. This discourages investment and displaces production and employment from other countries. The OECD, in an analysis of steel, warned that the fastest-growing sector in 2019 was steel used in machinery, vehicles, and metal products, which grew by more than 152%,” he explained.

He mentioned that the impact is seen in the Latin American automotive industry , where Chinese brands, such as cars, have gained ground and currently represent approximately one in five vehicles sold in the region.

Mexico, an example of industrial policy

Given this scenario, Vedoya considered the measures promoted by Mexico to strengthen its national industry to be positive , particularly through the Mexico Plan and trade protection instruments.

Among the actions highlighted was the tariff package that covers 1,463 tariff items corresponding to 17 industrial sectors, including steel, auto parts, automobiles and household appliances.

He also noted the agreement to promote the Mexican steel industry , which involves 19 public institutions and three business chambers, with the purpose of promoting greater national steel content in the country’s strategic projects.

He said these measures represent an example of collaboration between the public and private sectors to strengthen national productive capacities, and called on other Latin American countries to advance similar strategies.

He also stressed that the steel industry must take an active role through investment, technological innovation, research, development, and specialized training.

He explained that the steel industry in Latin America generates around 1.4 million direct jobs and maintains a strategic relationship with thousands of small and medium-sized enterprises.

Regarding investment, he indicated that during the last five years the sector allocated 22 billion dollars to the region and has ongoing projects worth another 13 billion dollars by 2030.

In this regard, he highlighted the importance of accompanying investments with the incorporation of technology and the strengthening of the capabilities of small and medium-sized enterprises (SMEs), in order to improve their production processes and generate greater value.

“The steel industry in Latin America can compete with any other in the world under fair competition. Under market rules, every dollar invested multiplies its impact fivefold,” he added.

He asserted that, although the outlook is complicated, it is necessary to work together and develop an agenda that promotes competitiveness, investment, develops talent , and supports the decarbonization of the industry.

Comment and follow us on LinkedIn:  @Evangelina del Toro  /  @GrupoT21

El cargo Latin American steel industry demands to curb China apareció primero en T21.