End clap for Huachipato, Chile’s main steelworks. Located in the port city of Talcahuano, 500 kilometers south of Santiago, this factory had established itself as a leading supplier to the continent’s mining industry, thanks to its 800,000 tonnes of steel produced each year.
China’s hegemony
The gradual debacle of this national flagship can be explained by Chinese competition. CAP, the Chilean mining giant that owns Huachipato, sounded the alarm in November 2023. It highlighted that steel imported from China was sold in Chile 40% cheaper than that produced locally. Despite the government’s implementation of additional customs duties of 33.5% for steel balls and 24.9% for steel bars, CAP threw in the towel in September… The sinking of this factory symbolizes China’s hegemony in this sector. This country’s market share internationally increased from 15% in 2000 to 54% in 2023, and that of Latin America was halved to 3%.
You are reading an article from L’Usine Nouvelle 3736 – November 2024
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Source: www.usinenouvelle.com
