According to a report by Latin American steel association Alacero, crude steel production in Latin America totaled 28.4 million metric tons during the first five months of 2012, remaining unchanged compared to the same period of last year. In May alone, 5.7 million metric tons were produced, which was six percent lower compared to May 2011 and down one percent compared to the previous month. Mexican production was 1.6 million mt of, up seven percent year on year.
During the month in question, Argentina and Brazil saw year-on-year decreases of eight percent and 12 percent respectively in their crude steel outputs.
The region's finished steel trade deficit in the January-April period of the current year was 4.1 million mt, significantly greater than the 2.3 million mt deficit in the first four months of 2011. Alacero attributed the increase to a deepening deficit of 1.5 million mt in Mexico. Colombia and Peru have the highest deficits after Mexico, with 568,922 mt and 474,283 mt respectively.
Apparent finished steel use in Latin America reached 22 million mt in the first four months of 2012, up nine percent compared to the same period a year ago, against a production level of 18.7 million mt. Mexico and Brazil led overall consumption with increases of 15 percent and 13 percent respectively, while Peru suffered a contraction of 11 percent, all on year-on-year basis.
Meanwhile, Latin American finished steel production in January-May reached 23.8 million mt. In the January-May period, Brazil was responsible for 46 percent of the volume with 11 million mt. Mexico was the second largest finished steel producer of the region with 6.7 million mt. In May alone, finished steel production was 5 million mt, representing a three percent increase over the same month last year. Mexico stimulated this growth with an increase in production of eight percent, while Argentina and Colombia slightly declined in comparison to May 2011.
In April 2012, the steel consumption of Latin America was 5.7 million mt, higher than finished steel production in the month which totaled 4.8 million mt.