Andi-Fedemetal, Colombia's metallurgical and steelmaking sector association has said that domestic steel prices are reaching international levels, as scrap metal, its main source of raw material, is being exported "indiscriminately".
Juan Manuel Lesmes, president of Andi-Fedemetal told BNamericas that increased demand is making the commodity scarce and expensive in Colombia and that prices have also risen on account of the large quantities being exported.
"We have asked the government to impose controls on these exports, but it has refused, arguing that such measures would be anti-free-market and it had not found sufficient reasons to apply controls," he said.
In this situation Lesmes said the sector is left with no alternative but to accept the international price for the metal.
According to the official, the internal price is at the point of equilibrium with the international price, "and we are dealing with the fluctuations; that is to say, as the raw material price rises so too does [the price of] the final product," he said.
For the moment the only thing Fedemetal can do is provide clear information for its affiliates, "we can't do anything else," he added.
With respect to this, Fedemetal had a meeting with national construction chamber Camacol and the vehicle parts association, Acolfa to explain that this is a problem not only for Colombia, but that it reflects an international trend.
The expectation is that as a consequence of increased consumption in China, the steel price is continuing its upward path during the year, "which unfortunately will result in inflation to which the productive chain will have to adjust," Lesmes said. BNamericas.com