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OECD Overcapacity Alarm Triggers Latin Steelmakers’ Call for Coordinated Trade Defenses

Mills report 60–70% use, citing Chinese imports that depress prices.

Overview

  • OECD warned global excess steel capacity could reach 721 million tonnes by 2027, calling the situation a crisis for producers.
  • Alacero reported a 2.4% contraction in regional crude steel output, with executives flagging sub‑viable utilization rates in Argentina and Brazil.
  • Mexico’s steel consumption is expected to fall 10.5% in 2025 as construction and manufacturing weaken and U.S. Section 232 measures bite.
  • Industry leaders urged anti‑dumping actions, higher tariffs, and regional coordination as the U.S. and EU tighten barriers and Latin America remains more exposed.
  • Ternium is proceeding with a $4 billion expansion in Pesquería to boost local, value‑added output, while executives press for tax and labor reforms to lift competitiveness.