ADOACERO's CEO, Marcelo Salazar, explained that the war between Russia and Ukraine is causing historic peaks, never seen since the 2008 global crisis, in international prices for steel billets, which are the raw material for finished steel products.
SANTO DOMINGO– The Dominican Steel Association (ADOACERO) reported that local manufacturers of finished steel products are constantly searching for new raw material suppliers, such as Mexico, Brazil, and Venezuela, to ensure the supply of the Dominican market since tensions began between Russia and Ukraine.
More than 35% of the iron and molten metal consumed in the Dominican Republic came from Ukraine, so since the conflict began, local producers proactively started to find new sources of supply in other countries in the region.
ADOACERO's CEO, Marcelo Salazar, explained that the war between Russia and Ukraine is causing historic peaks, never seen since the 2008 global crisis, in international prices for steel billets, which are the raw material for finished steel products.
Salazar indicates that the Dominican Republic is working hard to mitigate these international impacts in the best way possible, with the fundamental objective of ensuring that the market is always supplied.
“The great advantage we have as a country is that, thanks to our local industry, we have a much greater capacity to guarantee the market's supply of finished steel products, despite the international difficulties exacerbated by the conflict between Russia and Ukraine,” Salazar said.
He added that other countries in the Central American and Caribbean region, lacking a local industry, depend 100% on imports, so if a shortage occurs in the market, their construction industry is severely affected and threatened: “Thanks to our local production, the Dominican Republic does not experience that reality,” he asserted.
The executive also highlighted the importance of the local industry in generating foreign exchange, as the Dominican Republic exports finished steel products to more than 25 countries in the region.
For ADOACERO, it is vitally important to continue working hand in hand with the authorities to monitor the markets in order to provide Dominicans with the best possible solutions and to continue promoting the state plan for low-cost housing and the country's construction sector in general, which was one of the pillars of national economic growth in 2021.
