CARTAGENA, Colombia -(Dow Jones)- Latin American steel producers are trying to avoid a flood of Chinese steel through cooperation rather than protectionism.

"Some countries may decide to shut their market to Chinese steel, arguing subsidies or dumping, but I don't think this is the solution," said Roberto de Andraca, chairman of Chile's largest steelmaker CAP SA (Santiago:CAP) (CAP.SN), and president of the Latin American steel and iron industry group known as Ilafa.

"The excess capacity is transitory and they are trying to reduce it, they don't want to go to war against the world," de Andraca said.

De Andraca was speaking in Cartagena, Colombia, on the sidelines of an industry congress held here this week.

The executive has already met with Chinese steel officials on behalf of Ilafa, and met with Li Chang Shun, the chief executive of Jinan Iron and Steel Corp. ( 60022.SH), China's sixth largest steel company, during the Cartagena conference.

Latin America's attitude contrasts sharply with Europe. The European Confederation of Iron and Steel Industries, or Eurofer, the region's main steel lobby, this week asked for punitive taxes on cheap steel imports from Asia.

Eurofer said in a statement that steel exports had "inundated the E.U. market, " as exports jumped thirty times in the past four years. Eurofer claimed Chinese steel producers "dump" their products in Europe, meaning they're selling prices that are below production costs. It also accused the state of providing subsidies.

The increase in Chinese exports has been impressive. The Asian country imported about 35 million metric tons of steel in 2003 but is expected to export more than 50 million tons this year, according to figures from Dieter Ameling, the President of the German Steel Federation.

U.S. steelmakers have been less vociferous, as Chinese imports into the North American country have been discouraged by a weak dollar, high shipping costs and relatively low selling prices for steel. The number of anti-dumping cases filed by U.S.