Chilean apparent steel consumption in 2015 is expected to decline by 9 percent, year-on-year, as a result of the weak demand in the domestic market, the nation’s steel institute, ICHA, said this week.
According to the trade group, Chile should consume 2.5 million mt of steel in 2015.
ICHA said a retake of the country’s steel consumption could happen in 2016, but only if there are investments from the private sector. “As for 2016, if investments from the private sector take place, we believe the apparent consumption of steel could recover and maybe grow between 2 and 3 percent,” Juan Gutierrez, executive director at ICHA, said.
As most Latin American economies, Chile has also felt the impact of the massive steel imports from China.
ICHA said about 50 percent of the steel Chile consumes will come from China.
Forecasting a similar apparent steel consumption in 2015, Chile’s metal-mechanic industry association, Asimet, said that out of the 2.5 million mt of steel the South American country should consume, 62 percent will consist of imported steel, while the other 32 percent will be provided by the local industry.
Asimet estimated long steel consumption in 2015 to reach 1.4 million mt, while flat steel consumption should total 1.12 million mt.
As a result of the challenging competition with Chinese steel, local producer CAP Acero halted the production of long steel in 2013 as it couldn’t compete with the imported material from China. The halt in the operations resulted in the loss of 1,100 jobs.