Latin America’s steel industry has warned that a combination of global overcapacity, rising imports, and weak regional demand could accelerate deindustrialization in the region toward 2026. 

According to the Visión 2026 report by the Latin American Steel Association (ALACERO), record inflows of imported steel and steel-containing manufactured goods, often priced below local production costs, are placing severe pressure on domestic producers. 

China’s dominant position in global steel output and its surge in exports are identified as key sources of competitive distortion in the regional market. These challenges are not only affecting steelmakers but are also undermining downstream industries such as automotive, machinery, and construction materials. ALACERO therefore warns that without coordinated trade defense actions and stronger industrial policies, Latin America’s industrial base could weaken further by 2026.