The different sectors that matter raw Materials from Russia and Ukraine are analyzing other markets to be able to bring their merchandise to the Dominican Republic. A sector that is in constant search of new raw material suppliers is the steelwho verifies markets such as Mexico, Brazil and Venezuela.
“Really, we from the productive sector, despite the fact that in the last two years we have been importing a large number of these products from Ukraine and RussiaBefore 2020 we imported most of it from Brazil, from Mexico and from Venezuela, other countries in the region. In other words, basically what is going to happen is that those inputs from those regional countries that were previously imported will be used again. With the issue of supply there should not be a concern,” he said. Marcelo SalazarExecutive Director Dominican Steel Association (adosteel).
He said the industry steel on the Dominican Republic is quite strong and as an example, Salazar told Diario Libre that exports of rebar steel register positive growth during 2021.
“Our natural market is exports to the United States, but especially to Puerto Rico. We are the main commercial partner of the construction sector in Puerto Rico. Likewise, the sector’s sales at the local level have increased in recent times,” said the Adoacero executive, who added that the forecast for the sector is positive in the short and medium term.
In the contact with Diario Libre, Salazar delivered a document where he explains that more than 35% of the iron and molten metals consumed in the Dominican Republic they came from UkraineTherefore, since the conflict began, local producers have proactively begun to find new sources of supply in other countries in the region.
He said that the war between Russia and Ukraine is assuming historical peaks, never seen since the world crisis of 2008, in the international prices of billet, which is the raw material of the finished products of steel.
Salazar indicates that since Dominican Republic Hard work is being done to mitigate these international impacts in the best possible way, with the fundamental objective that the market can always be supplied.
Imports and exports
According to the import data published by the General Directorate of Customs (DGA), the import of raw Materials iron foundry and steel grew by 102.63% during 2021, going from US$489.95 million in 2020 to US$992.79 million in 2021, for an absolute variation of US$502.84 million.
The sector steel The Dominican Republic currently exports its finished products to more than 25 countries in the region, which translates into an activity that generates foreign currency in the country.
“The steel industry represents an essential sector for the construction sector in the Dominican Republic. One of the advantages that our country has, unlike other countries in the region that depend 100% on imports, is that it has companies local producers that allow to meet the needs of Dominican companies”CEO of Adoacero
According to the Trade Magazine of the General Directorate of Customs (DGA), during 2021 the line foundry, iron and steel occupies 14.06% of national exports. In economic terms, in 2020 the sector exported products with a value of US$419.48 million and during 2021 this figure rose to US$597.51 million for an absolute difference of US$178.02 million. A growth of 42.44%.
Customs indicates that the destinations of national exports (all national exports including those of the sector steel) in the period January – December 2021, 83.44% is concentrated in 10 destination countries, with Switzerland standing out with a participation of 22.41%, followed by India (17.34%), the United States (14.05%), Haiti (12.64%) , Puerto Rico (5.14%), China (4.94%), the Netherlands (4.14%), Jamaica (1.55%), the United Kingdom (1.01%), Canada (0.22%) and the rest represent 16.56%.
Jobs and social impact
It stands out that Adoacero associates generate more than 900 direct jobs, while the total sector directly impacts more than 3,000 families and around 12 thousand indirectly.
