In a recent institutional visit to Chile, Ezequiel Tavernelli, the Executive Director of Alacero, Latin American Steel Association, focused on strengthening ties within the Chilean steel industry while addressing pressing challenges faced by the global sector. The visit, which took place at the Colina Plant of AZA (Acero Zincado de América), brought together key figures from the Chilean government and industry to discuss strategies for tackling the growing threats to regional steel markets.
One of the highlights of Tavernelli’s visit was a working meeting with Nicolás Grau, Chile’s Minister of Economy. This high-level discussion centered on the current state of the global steel industry, which is facing significant challenges, particularly in Latin America. Tavernelli emphasized that while the steel industry worldwide is going through a difficult period, the situation is especially critical in the region. He pointed out that the Latin American steel sector is under increasing pressure due to unfair import practices from countries in Southeast Asia, which have been flooding the market with cheap steel products. This trend has led to trade imbalances and has put local producers at a significant disadvantage.
During the meeting, Tavernelli underscored that the surge in low-cost steel imports, particularly from Southeast Asia, is not only economically damaging but is also unfair. These imports often come in at prices that are below production costs, a practice that many in the steel industry view as a form of dumping. This type of competition, Tavernelli explained, is harmful to both the industry and the workforce, as it leads to price distortions, threatens local jobs, and reduces investment in the region’s steel infrastructure. He urged the Chilean government to continue taking a strong stance against these practices, which could further damage the regional steel market if not adequately addressed.
The visit was not only about discussing challenges but also about fostering collaboration among the various stakeholders in Chile’s steel sector. Tavernelli and his delegation from Alacero met with representatives from CAP, Chile’s largest steel producer, Asimet, the Chilean Steel Association, and ICHA, the Chilean Industrial Chain Association. These meetings were aimed at continuing to build strong relationships within the industry and finding ways to jointly address common issues. Tavernelli emphasized the importance of industry collaboration and collective action in response to the threats posed by unfair trade practices.
One of the key aspects of the visit was a tour of the Colina Plant of AZA, which allowed Tavernelli and his colleagues to observe the state-of-the-art steel production processes in Chile. AZA, a key player in the country’s steel production, has long been an important part of Chile’s industrial landscape. During the visit, Tavernelli noted that companies like AZA represent the backbone of the country’s steel industry and are integral to ensuring that the sector remains competitive on both a regional and global level. The plant tour also provided an opportunity to discuss technological innovations and best practices that could help Chilean producers stay competitive in an increasingly difficult market.
Tavernelli’s message to the Chilean steel industry was clear: the region must act together to protect its market share and ensure the sustainability of its steel production. He stressed the need for continued investment in infrastructure, improved trade defense mechanisms, and the adoption of technology that can enhance productivity. Tavernelli believes that by working together and staying united, the industry can overcome the challenges posed by unfair imports and other external pressures.
The challenges facing the Latin American steel industry are not unique to Chile. Across the region, steel producers are grappling with the effects of global economic uncertainty, including rising raw material costs, supply chain disruptions, and declining demand in traditional markets. However, Tavernelli remains optimistic that by strengthening regional cooperation and advocating for fair trade policies, the industry can stabilize and eventually recover. He also emphasized the importance of innovation and adapting to new technologies as a way to remain competitive in a rapidly evolving global marketplace.
