Chile’s tariffs on Chinese steel products boost local steelmaker CAP’s stock

In March, CAP agreed to suspend operations at the Compañía Siderúrgica Huachipato (CSH) in southern Chile for about three months, after it considered a move against Chinese imports by the local regulator as insufficient.

Then on Sunday, a letter to the securities regulator from the CAP board said the company “made the decision to reverse the indefinite suspension process”.

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The measure was taken after a commission received appeals from the company and others interested in modifying recommendations for provisional measures on imports of steel bars and balls from China.

The statement by CAP said the decision “will imply the continuity of CSH’s steel operations while surcharges remain in force that allow CSH to operate in a competitive environment”, adding that will allow for continued employment for workers, suppliers and contractors.

The company said it was analysing the “irreversible costs” of the suspension process.

Tariffs against Chinese products may not exceed six months, counting from the end of March, according to the decrees.