Released November 18, 2025 | SUGAR LAND
en
Written by Amir Richani for Industrial Info Resources (Sugar Land, Texas)
In August, Alacero warned that Chinese exports of semi-finished steel to the region grew 233% in the past 15 years, while indirect steel exports increased by 338% from 2008 to 2024.
Brazil, by far the largest crude steel producer in the region and one of the top 10 worldwide producers, is among the most affected by these Chinese policies, with steel imports from January to September reaching 5.07 million tons, a 9.7% increase from the same period last year, according to the Steel Institute of Brazil. China accounted for 61.1% of the steel imported by Brazil during that period, followed by South Korea with 11.5%.
Compared to January-September 2013, Brazil's imports of rolled and long steel products increased 83.6% in the same period of 2025.
Alacero argues Chinese interconnected subsidies enable steel exports at prices below production costs, undermining Latin American producers. According to Alacero, these subsidies are 10 times higher than those for countries in the Organisation for Economic Co-operation and Development (OECD), serving not demand but domestic job and development goals in China.
Without a change in path, "what is at stake is not just one industry, but the entire industrial future of Latin America," Alacero said in its August report. "The steel value chain generates 1.4 million jobs in the region; high-value jobs that foster upward social mobility and sustainable economic development."
"The major change that we should have in Brazil is a trade defense," said Gustavo Werneck, the chief executive officer of Gerdau. "I know that, with time, Gerdau could probably do more things. We can grow on the ore side, and we could even look for recycling some of our capital in Brazil. So, there are things that we could do, but in the short term, there is not much more we can do. I do not think anything could change the scenario except for the trade defense."
Industrial Info is tracking 265 steel mining-related projects across Central and South America, worth US$13.19 billion.
Key Takeaways
About Industrial Info Resources
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).
Summary
Latin American imports of Chinese steel, driven by heavy subsidies to the industry, are hampering the sector's profitability. Companies operating in the sector suggest trade protection might be the solution.Alacero Warns of Imports' Effects
The Latin American Steel Association (Alacero) is voicing concerns about the impact of Chinese steel dumping on the region's producers. At a conference on November 11 in Cartagena, Jorge Oliveira, president of Alacero, said that "despite our efforts, Latin America's steel market is deteriorating due to global overcapacity from Asia."In August, Alacero warned that Chinese exports of semi-finished steel to the region grew 233% in the past 15 years, while indirect steel exports increased by 338% from 2008 to 2024.
Brazil, by far the largest crude steel producer in the region and one of the top 10 worldwide producers, is among the most affected by these Chinese policies, with steel imports from January to September reaching 5.07 million tons, a 9.7% increase from the same period last year, according to the Steel Institute of Brazil. China accounted for 61.1% of the steel imported by Brazil during that period, followed by South Korea with 11.5%.
Compared to January-September 2013, Brazil's imports of rolled and long steel products increased 83.6% in the same period of 2025.
Alacero argues Chinese interconnected subsidies enable steel exports at prices below production costs, undermining Latin American producers. According to Alacero, these subsidies are 10 times higher than those for countries in the Organisation for Economic Co-operation and Development (OECD), serving not demand but domestic job and development goals in China.
Without a change in path, "what is at stake is not just one industry, but the entire industrial future of Latin America," Alacero said in its August report. "The steel value chain generates 1.4 million jobs in the region; high-value jobs that foster upward social mobility and sustainable economic development."
Gerdau Also Sounds the Alarm
During its third-quarter conference call, executives at Brazilian steel producer Gerdau S.A. also warned about the negative effect of imports on the profitability of its Brazilian operations."The major change that we should have in Brazil is a trade defense," said Gustavo Werneck, the chief executive officer of Gerdau. "I know that, with time, Gerdau could probably do more things. We can grow on the ore side, and we could even look for recycling some of our capital in Brazil. So, there are things that we could do, but in the short term, there is not much more we can do. I do not think anything could change the scenario except for the trade defense."
Industrial Info is tracking 265 steel mining-related projects across Central and South America, worth US$13.19 billion.
Key Takeaways
- Chinese exports of semi-finished steel to Latin America grew 233% over the past 15 years, while indirect steel exports increased 338% from 2008 to 2024.
- Compared to January-September 2013, Brazil's imports of steel rolled and long products increased 83.6% in the same period of 2025.
- Experts suggest that trade protection could be the answer to the problem.
About Industrial Info Resources
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).
