The purpose of this study is to analize the main sources in inefficiency affecting the steel industry in Latin America and to provide an insight as to future development of the industry. The analysis involves the examination of some historical and economic facts in the establishment of a steel plant and financing sources for the steel industry, are examined, and there is a brief analysis of the process of economic integration of the iron and steel industry in Latin America.

The analysis in mainly related to the period 1950-1970. However, some historical facts are presented for earlier years and the investment requeriments for he expansion of the steel industry in Latin America up to 1980 are analyzed on the basis of available projections for the steel demand util that year.

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¹ Pennsylvania State University, The Graduate School, Department of Mineral Economics, Marzo 1974.