The pernicious effect of dumped imports has been shown in Chile, where the country’s largest steelmaker is to close, affecting 2 700 workers directly and 20 000 more indirectly.
The owners of the Huachipato steel plant blamed “the intensification of Chinese dumping” for their decision to suspend operations immediately and close the plant by September.
The decision came despite the imposition in April of temporary tariffs on Chinese imports of steel bars and balls. Both products are key inputs in copper production, in which Chile is the world leader.
The company said that, even with these tariffs in place, it could not competitively price its steel.
The report said that, in the last two decades, China has increased its share of the world steel market from 15% to 54% according to the Latin American Steel Association (Alacero).
