• by IPS Correspondents (santiago)
• Tuesday, November 22, 1994
• Inter Press Service

SANTIAGO, Nov 22 (IPS) - Latin American steel production is expected to recuperate record levels this year, according to an industry official at a conference begun Monday in Santiago.

Latin American Iron and Steel Institute (Ilafa) President Henrique Machado said 1994 figures would reflect 6.2 percent growth in raw steel production, with a total of 46.2 million tonnes. Machado, who heads Venezuela's steel industry, said the growth would "bring back the historical record set in 1980."

Delegates at the 35th Latin American Steel Industry Congress - to conclude Wednesday - are optimistic that the industry, hard- hit by the recession of the 1980s, will continue to recuperate.

The 600 Congress participants will analyse current trends in technology and commercialisation of iron minerals, communications and their importance to the sector, opportunities for the Latin American steel industry and the threats that it faces.

Regional steel production has grown steadily in recent years, despite protectionist pressures from industrialised nations and accusations of dumping and unfair subsidies, Machado said.

The recuperation was first made possible by the collapse of internal markets in 1983, when the recession reached its height during what became known as the "lost decade" for development.

By 1993, Latin American steel exports had reached 17 million tonnes, an unprecedented 10 percent of world production.

Machado added that sales within Latin America increased for the second consecutive year in 1993, supported by strengthened regional economies and a 3.2 percent rise in the region's gross domestic product despite an "adverse international scenario."

Meanwhile, the outlook for 1994 is improved by economic recuperation in the industrialised nations, which favours increased steel prices.

Intensive privatisation in the early 1990s left 97.5 percent of the region's steel production in private hands, as only Peru, Paraguay and Venezuela retain state control over the industry.

According to Roberto de Andraca of Chile, privatisations carried out - first in his own country and later in Argentina, Brazil, Mexico and other nations - were an important factor in the recovery of the regional steel industry.

More than 200,000 people are employed in the sector, although the costly privatisation process included the loss of 90,000 jobs. "This painful, but necessary, adjustment has allowed for a 50 percent increase in labour productivity," Machado said.

© Inter Press Service (2014) — All Rights Reserved. Original source: Inter Press Service

Where next?

Advertisement