According to a release from Alacero, in the first quarter of 2015, crude steel production in Latin America decreased 2 percent while the finished steel production increased 2 percent, both year-on-year. Apparent steel consumption increased 5 percent year-on-year, being increasingly supplied by imports, which now account for 34 percent of consumption in Latin America. Meanwhile, the trade balance of the region continued to deteriorate: in the first quarter of 2015 the deficit in tons was 30 percent more compared to the same period of 2014.
In Q1, Latin America and the Caribbean produced 16 million tons of crude steel, 2 percent less than the volume of the first quarter of 2014. Brazil accounted for 53 percent of regional production (8.4 million tons) showing a growth of 1 percent.
In the first quarter of 2015, Latin America imported 6.1 million tons of finished steel, 20 percent higher than in Q1 2014 (5.1 million) level. Currently, imports of finished steel represent 34 percent of consumption in the region, which Alacero said has resulted in disincentives to the local industry, increasing trade frictions and jeopardizing sources of skilled labor. As for exports, Latin American exports of finished steel reached 2 million tons, up 3 percent vs Q1 2014.
In the first three months of 2015 the region recorded a trade deficit of 4.1 million tons of finished steel. This imbalance is 30 percent higher than that observed in the first quarter 2014 (deficit of 3.2 million tons).
Brazil was the only country in the region that was in surplus finished steel trade (67,000 tons). The biggest deficit is in Mexico (-1.7 million tons), followed by Colombia (-643,000 tons), Peru (-499,000 tons) and Chile (-422,000 tons).
Advance information for April 2015 indicates that crude steel production reached 5.5 million tons in the month, the same level as in April 2014. Production of finished steel closed at 4.8 million tons, no registering growth.
In the first four months of 2015, crude steel production reached 21.4 million tons, 1 percent less than the same period of 2014, while production of finished products reached 18.9 million tons, up 2 percent in the same period of 2014.