Steelstorm Scenarios & Strategic Self-Reliance in Latin AmericaEzequiel Tavernelli, Executive Director of the Latin American Steel Association Alacero, has raised a clarion call to protect the region’s steel industry from economic erosion caused by an influx of cheap imports. Speaking during a recent episode of the OPIS Talks podcast, hosted by Dow Jones, Tavernelli detailed how unrestrained imports from China & Southeast Asia have disrupted local production ecosystems.

Manufacturing Malaise & Macroeconomic MarginalisationTavernelli painted a sobering picture of Latin America’s declining industrial contribution, noting that manufacturing’s share in the region’s gross domestic product has shrunk by 4 points over the past 25 years. This long-term trend, compounded by 2024’s record-breaking steel imports, underscores the gravity of the current crisis. He stressed that this shrinkage has repercussions not just for the steel industry, but across the broader economic spectrum.

Deindustrialisation Dangers & Defensive DiplomacyAt the heart of Tavernelli’s warning lies a concern over what he termed “unfair imports”, steel products flooding the market at artificially low prices. These imports, mainly from China & Southeast Asian nations, are undermining local producers who face significantly higher energy & labour costs. Tavernelli emphasised that the absence of rigorous trade defense mechanisms leaves Latin America exposed to industrial destabilisation.

Regional Resilience & Resourceful Readiness ReaffirmedDespite the dire challenges, Tavernelli remains confident in Latin America’s potential to become a pivotal supplier for North America’s manufacturing sectors. He lauded the region’s existing industrial infrastructure, access to vital raw materials, and an abundant, skilled labour force. In his view, these foundational elements can empower Latam to transition from defensive postures to proactive participation in global supply chains.

Policy Paralysis & Protectionist Prescriptions ProposedTavernelli argued for stronger regional trade policies to shield domestic manufacturers. He recommended tighter import controls, improved monitoring systems, and collective Latin American advocacy in global trade forums. Without such measures, he warned, the region could face irreversible losses in both employment and technological competitiveness.

Jobs Jeopardised & Jarring Economic JostlingThe stakes are high. Tavernelli highlighted that the steel industry and its value chain are responsible for generating 1.4 million direct & indirect jobs across Latin America. A continuation of the current import trajectory, he asserted, could threaten these livelihoods and widen existing social inequalities. Safeguarding industrial employment must therefore become a top priority for policymakers.

Tech Tenacity & Talent Tapped for Tomorrow’s TriumphsTavernelli expressed optimism about Latam’s capabilities, citing its robust technological base and human capital as key assets. He underscored the ability of local firms to adopt advanced manufacturing methods, thereby reinforcing competitiveness. With the right policies and global partnerships, Latam can not only defend its markets but also scale its exports to strategic regions.

Continental Collaboration & Coherent Commitment Called ForIn closing, Tavernelli urged governments, industries, and trade bodies across Latin America to unite in forming a coordinated response. He noted that while national strategies are helpful, regional solidarity will provide greater leverage in international negotiations. Only through collective resolve, he concluded, can Latin America ensure a sustainable, self-reliant future for its steel sector.

Key Takeaways:

• Ezequiel Tavernelli warned that Latam’s steel sector is threatened by unfair imports from China & Southeast Asia

• The manufacturing share in Latin America’s GDP dropped 4 points in 25 years amid rising imports

• The steel value chain supports 1.4 million jobs, requiring urgent trade defense & regional collaboration