They advocated further regional integration to help them adapt to the recent decline in globalization.
The local industry has been warning for quite some time about the negative consequences of trade defense actions elsewhere in the world while the region opened itself up for imports. Market participants have now reacted against a clash between the current Brazilian government and the administration that will soon take office in Argentina.
While Brazil is looking to open up trade by reducing import tariffs, the new Argentinian leadership is openly more protectionist.
Brazil and Argentina have the highest percentages of domestic steel supply in the region, but their mills’ pricing power is influenced by global movements. Market participants fear that a rushed trade opening could hinder the increase in movements expected from producers in 2020
“As the Chinese industry expanded, developed countries [became] preoccupied with their own industrial capacities, which culminated in a game-changing...