Huachipato's steel company reversal: Paving the way for equitable steel industry growth

Scarlet Ibarra / April 22, 2024 | 10:18
The chilean steel company, Huachipato, reverses suspension plan, implementing surcharges to address price distortions. Anti-Distortion Commission's provisional measures promote fair competition, urging institutional modernization.

On Sunday, Huachipato steel company, announced that it will reverse the suspension plan following the establishment of required surcharges by the company to compensate for price distortions. The decision of the Anti-Distortion Commission to set provisional measures for steel bars and balls for mineral grinding - following Huachipato's appeal - will initiate the development of market equilibrium and fair competition.

Additionally, Huachipato stated that it considers it essential to move towards modernizing the institutional framework to include measures for longer periods and grant greater powers to the Commission, similar to what occurs in other countries. With this decision by the commission which is provisional, for a few months, as the definitive measures are still pending the company has decided to continue its steel operations. 

"It is good news for a nationally strategic industry for the sustainable development of Chile. We appreciate the decision of the Anti-Distortion Commission, as it allows for the elimination of distortions, market balancing, and enables national actors to demonstrate their capabilities in providing the best steel for Chile. However, we hope that this provisional measure is confirmed with definitive measures that allow us to compete on a level playing field. Only in this way can Huachipato contribute to the development of the mining and industrial sector of the Biobio Region and the entire country," said Julio Bertrand, Chairman of the Board of Siderúrgica Huachipato. 

"I want to acknowledge the unconditional support of the workers and leaders of Huachipato and the entire Biobio community. I also want to recognize the serious work carried out by the authorities in reviewing the submitted resources," Bertrand emphasized.

From Huachipato, it was also stated that they "consider indispensable" advancing towards institutional modernization, so that the deadlines for these types of anti-dumping rights are extended to five years and grant greater powers to the commission, as is the case in countries such as the United States, Australia, Mexico, India, and Europe. Additionally, they expressed the need to develop a monitoring system that allows for early correction of potential distortions.

The mill, a company within the CAP group, generates over 20,000 jobs in the area, with over 70 years of history, and "plays a fundamental role in the sustainable growth of the national mining industry, significantly contributing to the achievement of the decarbonization goals of that industry in Chile," as stated in the company's issued statement.

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