Monday, January 13, 2014

The iron and steel industry is declining

Latin America is becoming an indirect a net importer of steel trade of goods, and the domestic iron and steel industry is declining.Latin American iron and steel association (Alacero) said that if governments don't take measures,ASME A106/A53 Black Steel Pipe and tube the region's "de-industrialisation" may be only a matter of time.The union suggested that Latin American governments promote the development of metal - mechanical value chain, and take measures to control the import of steel from China.With subsidies to import a lot of negative impact of employment,cold drawn carbon steel pipe in Latin America must be properly resolved.

In addition, Latin America, the government must be in the next decade, to increase the industrial investment accounted for the proportion of GDP to 22% 25%.In addition, a large number of imports also produced some negative influences.For example,astm a234 CS seamless elbow R=1.5D Brazil's iron and steel industry in the region's largest, the current capacity utilization rate is 70%, and the historical average is 86%;Chile's biggest steelmaker CAP, has stopped its flat steel production, because the companies cannot compete with the prices of Chinese imports low product;Mexico's trade deficit with China's industrial manufactured goods one year, just as much as $45 billion.

Latin America's steel industry is facing "Dutch disease", the mining sector distortion and metal - mechanical department customer base is weak.If the region continue to move in to "industrialization" development, the steel industry will completely lose their customer base.Iron and steel industry is the core of a nation's industrial development, stagnant industry for sustainable economic growth and employment growth to provide strong support.Today, is not only in Latin America, other countries and regions in the world are facing because of the market imbalance caused by social and economic challenges.

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