Supply Strategies for Angle Steel in Latin American Power Facilities: A Comprehensive Analysis of Demand and Certification Requirements by 2025
Release time:
2025-08-13
Supply Strategies for Angle Steel in Latin American Power Facilities: A Comprehensive Analysis of Demand and Certification Requirements by 2025
Latin America is experiencing an unprecedented infrastructure boom. Mexican President Seinbaum's "Mexico Plan" is of staggering scale—$277 billion invested in 2,000 infrastructure projects, with $7.7 billion allocated to railway construction in 2025 alone. Furthermore, the country's "Electricity System Plan 2025-2030" specifically allocates $12.3 billion for new power generation capacity and $7.5 billion for transmission and distribution infrastructure.15 Countries like Brazil, Argentina, and Chile are also advancing their energy transitions, creating significant opportunities for angle steel exporters.
Market analysis shows that the Latin American specialty steel market will reach $885 million in 2024 and is expected to grow to $1.17 billion by 2030, achieving a compound annual growth rate of 4.8%.9 The energy sector accounts for 20% of specialty steel demand, with power infrastructure being a core application scenario. In terms of regional production capacity, Brazil leads (45%), followed by Mexico (32%), and Argentina (15%).
I. Latin American Demand and Specification Requirements for Power Angle Steel
Mexico's energy transition policy explicitly encourages green building materials and promotes the use of lightweight, high-strength angle steel in transmission towers. Its national power projects specifically specify the use of 10# to 20# angle steel made of materials such as ASTM36, S355JR/S355J0, and other materials.
Brazil, the region's largest steel producer, uses large-gauge angle steel (12.5# to 20#) for its ±800 kV UHV hydropower station project, generating strong demand for high-strength materials such as Q420B.
Grid interconnection projects in Central America and the Caribbean favor economical materials such as Q355B, but place stringent requirements on anti-corrosion coatings. Through precise targeting, Hesteel Group successfully supplied 72,000 tons of steel profiles directly to over ten power transmission projects in eight Latin American countries, demonstrating the diversity of regional demand.
II. A Complete Analysis of Certification Barriers to Angle Steel Exports
Entering the Latin American market requires navigating complex certification hurdles. Core requirements include:
Mexico NOM certification: A mandatory safety certification that requires companies to provide local importer information, an accredited laboratory test report (including a 127V/60Hz rating), and Spanish instructions. The certificate is valid for only one year, and each importer must obtain a separate certificate.
Argentina's new regulations: The new QR code conformity mark system, originally scheduled for implementation in March 2025, has been postponed to October 1st. Companies are required to update their label designs and certification processes in advance.
Ecuador's INEN 018 regulation: Mandatory technical standards for hot-rolled and cold-rolled construction angle steel, covering dimensional tolerances, mechanical properties, and chemical composition requirements.
Common Requirements: Almost all Latin American countries require a Certificate of Origin (CO) and embassy certification. Brazilian customs clearance also requires an additional certificate of exemption. It is recommended to use a professional agent to handle this, which can shorten processing time by one to two weeks.
III. Welding Standards and Material Specifications
Angle steel used in power towers must meet strict structural specifications:
Welding Process: The leg dimension (hf) of fillet welds must not be less than 1.5√t (t is the thickness of the thicker weldment). Submerged arc automatic welding can reduce this by 1mm. The weld length must not be less than 8hf and 40mm, and the maximum should not exceed 60hf.
Material Tolerances: The allowable deviations for the side width, side thickness, and top angle of angle steel used in the Southern Power Grid project are stricter than standard standards. For example, the angle steel produced by Hegang Xuangang for the Zambia project maintains a curvature of ≤0.3%L (L is length) to ensure high-altitude assembly accuracy.
Defect control: Surface protrusion height of weld seams ≤ 1.5 times the weld thickness, and concave depth ≤ 0.5 times the weld thickness. Internal cracks and pores are strictly prohibited.
IV. Strategies for Addressing Price Fluctuations
Angle steel exports face multiple cost variables:
Raw material costs: Iron ore price fluctuations are transmitted to billets, with the price difference for South American imported billets expected to reach $80-120/ton in 2024.
Logistics factors: China-Mexico ocean freight rates increased by 23% quarter-over-quarter in Q2, with tight shipping capacity driving up costs.
Tariff incentives: Leveraging Mexico's free trade agreement network (covering over 50 countries), angle steel that meets the rules of origin can enjoy zero-tariff access to a market of 1 billion people.
Localized production: Mexico's special economic zones offer a "five exemptions and five reductions" income tax incentive, while Brazil reduces the IPI industrial tax for products with a localization rate of 60%.
V. Practical Strategies for Enterprises
Technology Adaptation: Successful cases demonstrate that Hegang Xuangang, by analyzing the differences between European standards (S355JR), American standards (ASTM36), and the Southern Power Grid's standards, optimized rolling temperatures and cooling processes, and secured multiple national power grid orders.
Channel Development: We recommend entering the market through the 2026 Mexico Construction Week (April 14-16, 2026, Guadalajara). This exhibition is a top B2B platform in the Latin American construction sector, with exhibitors averaging over 30 effective cooperation intentions.
Localized Services: Establishing a bonded warehouse in Mexico will reduce delivery time from 60 days to 15 days, while also staffing a Spanish-speaking technical team to address after-sales needs such as on-site welding guidance.
Angle steel companies entering Latin America should develop a three-dimensional strategy: "Certification first, technical customization, and deep channel development."136 Amidst the surge in Latin American power construction, grid upgrades driven by Mexico's energy reforms, the construction of transmission corridors in the Brazilian rainforest, and the Central American national grid interconnection project will continue to drive demand for angle steel. Companies that can accurately grasp specification differences, certification timelines, and price windows are expected to seize opportunities in the specialty steel market, which is experiencing a 4.8% annual growth rate.9
The exhibition booth at the Jalisco Exhibition Center in Mexico is about to go up.
The strength of Chinese angle steel is quietly supporting the power grid in the Andes.
From the Brazilian rainforest to the Mexican desert,
the steel beams spanning the Pacific,
protected by certification documents and technical standards,
are lighting up the night sky across Latin America.
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