Colombian steel producers are raising concerns over a sharp increase in steel imports from Russia and China, which they say is harming the economy and employment in the sector. Steel imports from these countries have surged by 75% in the first half of the year compared to the latter half of 2023, prompting calls for government action.

Industry leaders are urging the Colombian government to implement safeguards to protect domestic production and jobs. The rise in steel imports from countries without free trade agreements (FTA) with Colombia has flooded the market, undermining local industries.

Speaking to Colombian newspaper El Tiempo, Fabio Galán, President of steel manufacturer PazdelRío, highlighted the severity of the situation, noting that unfair competition threatens jobs. "At PazdelRío, we have been striving to protect jobs despite significant financial losses. However, the situation has deteriorated, and we cannot tackle it alone. Urgent national measures are required, particularly safeguards against unfair steel imports from China and Russia," he stated.

Galán pointed out that China alone produced 1,019mn tonnes of steel last year, equivalent to 120,000 tonnes per hour. In just 13 hours, China produces as much steel as Colombia in a year. The livelihoods of 21,000 people connected to PazdelRío, including direct employees, contractors, pensioners, and families dependent on the company's supply chain, are at stake. PazdelRío makes annual purchases worth COP1.3bn ($327mn) from national suppliers, with 93% located in Boyacá.

The potential collapse of Colombia's steel industry, which has a 75-year history and is the largest employer in the Boyacá department, is a significant concern. Galán warned that the industry's survival is at risk without appropriate corrective measures.

Galán stressed that the industry is not opposed to imports but seeks protection against unfair competition practices to safeguard national employment and ensure the availability of high-quality domestic steel. He highlighted that other nations, such as the United States, Mexico, Brazil, and Chile, have imposed tariffs and quotas on steel imports to protect their markets.

For instance, the United States has a 25% tariff on steel imports from China and Russia, including those attempting to enter via Mexico. Since April, Mexico has increased tariffs to an average of 30%, with some steel products facing up to 40% tariffs. Brazil announced in June 2024 the implementation of quotas and a 25% tariff on steel imports. Similarly, Chile has applied tariffs of 24.9% for steel bars and 35% for grinding balls since March. European countries also maintain safeguards and a 25% tariff on steel imports.

As countries around the world impose tariffs on Chinese and Russian steel, these exporters are increasingly targeting markets like Colombia, where safeguards are yet to be established. PazdelRío emphasised the need for Colombia to act quickly and align its policies with traditional trading partners such as the United States and Mexico.