The government is worried about the increase in steel imports and is analyzing ways to stop it

The overabundance of steel existing in the world and the safeguards imposed by several countries to avoid a product invasion began to worry the Argentine government, which warned that closely monitors "the increase in imports of inputs for the energy sector, such as the production and operation of oil pipelines".

According to sources from the Ministry of Production, "the purpose of this monitoring is to safeguard the production and employment of Argentines", because "the steel industry for the production of tubes has made an offer very competitive these last months ".

"Steel imports were laughable, they accounted for 3% of the total market, but in recent weeks we have seen a very considerable increase in imports, particularly of tubes. at prices lower than the regional average: up to 30% lower", they detail in the production.

"Let's see if there is a specific problem or a lasting trend, if so, we will badyze measures"they detail. These measures could be include steel products in those requiring non-automatic licenses, a complaint by dumping or increase the import tariffs, still in the rules of the WTO.

The government reaffirmed that the Argentine industry, which provides integrated production and conduct pipelines by large companies and local SMEs, is able to provide the energy and pipeline development that the country is developing . That's why "It is of utmost importance that local businesses can leverage the influence of Vaca Muerta as the engine of the economy, to be the protagonists of this business and preserve employment. "

"These imports could represent a risk to the sustainability of the domestic industry – especially for SMEs in the sector – which produces more than 5,000 highly skilled and technically capable people to compete competitively. local tubes. "said the portfolio led by Dante Sica.

The government has maintained a fairly open import policy, although The figures show a significant drop in purchases due to the decline in activity and the high exchange rate. Anyway, in the case of steel tubes, the problem is that even with the 12 and 14% tariffs they have to enter, Vaca Muerta represents today an opportunity for global sellers. large surplus and high taxes in many countries.

"There are more than 700 million tons of steel in the world and Argentina consumes 5 million, of which more than 50% belongs to China.In this context, we have been working with the government for a long time and For example, we negotiated a quota to enter the North American market, which set a tariff of 25% last year, "they told the Argentine Steel Chamber (CAA).

In addition to the United States, Canada also has 25% and Mexico has a 15% tariff. In turn, the European Union had a guarantee and left it definitive from February.

In its latest report, the Latin American Steel Association (Alacero) warned against the iron and steel industry worries about the growth of Chinese imports in the region. Indeed, from June to November 2018, Chinese exports to the rest of the world
they have contracted by 5% compared to 2017, although this is very different in the case of Latin America, since at the same time, the region imported a total of 3.9 million tons of Chinese steel, or 860,000 tons more than in 2017, representing an increase of 28%.

China's total share of imports rose by two points
percentage in Latin America, which now receives 11% of all steel exported by this country to the world, becoming its main destination. "The diversion of trade generated by the trade war between the United States, China and the European Union and the reactive safeguards of other countries is then verified. Latin America, for its part, remains dangerously pbadive in the face of this reality"stressed the entity.