After two days of interesting presentations, yesterday finished a new edition of the Latin American Steel Conference, Alacero-58 & ExpoAlacero 2017 bringing together more than 500 representatives of the Latin American steel chain and the world.
During the event, prominent analysts and industry representatives spoke about the Latin American and world scenario. After 4 years of deceleration and crisis, the situation is reversing, in part due to Argentina and Brazil, best world trade conditions, the recovery of commodities and global growth, according to the presentations.
According to the latest International Monetary Fund forecast, the region growth will be 1.2 percent for this year and 1.9 percent for 2018. Likewise, steel drivers in the region, such as industrial production, will be in line with economic expectations, averaging positive values for the first time since 2013, Alacero said in a press release.
A similar situation is experienced by the world steel industry, the latest estimates submitted by worldsteel show us a strong growth in world steel consumption for this year (+ 7.0 percent vs. 2016), reaching 1.622 billion metric tons. It is explained by China´s strong growth, which will consume 765.7 million mt in 2017, recording an increase of 12.4 percent vs. 2016. The United States and Canada, together, will end 2017 with a finished steel consumption of 111.8 million mt, 4.7 percent more than in 2016. In the same way, the European Union (28) will grow 2.5 percent, reaching 162.1 million mt.
Another issue mentioned during Alacero-58 was Chinese exports to Latin America. An increase of 11 percent (8.5 million mt) is expected for 2018. In this way, imports have an increasing participation in Latin American consumption, which are mostly, under unfair trade conditions, causing serious damage in local industry. The Latin American industry has reacted, working aside with the respective governments, using the instruments allowed by the World Trade Organization to counteract this situation that undermines the competition and the development of the countries.
Latin America will consume 67.2 million mt in 2017 (3.7 percent more than in 2016). Additionally, the expectations for 2018 are encouraging. The main markets of the region expect to grow in steel consumption; Mexico, Brazil, Argentina and Colombia predict increases of 3.0 percent, 7.0 percent, 5.3 percent and 4.0 percent, respectively in 2018. Overall, Latin America projects a growth of 4.0 percent vs. 2017.
Alacero reflected on the need to deepen economic reforms in the countries of the region, promote investments to grow faster and more sustainably, allowing Latin America to have a more dynamic steel demand.
As part of its closing ceremony, Alacero announced the formation of its Board of Directors and Executive Committee for 2018 period. The Executive Committee is composed by:
President: Jefferson De Paula
1st Vice-president: Martín Berardi
Secretary: Fernando Reitich
Treasurer: Carlos Arturo Zuluaga
Directors: Raúl Gutiérrez Muguerza, Alexandre de Campos Lyra, Guilherme C. Gerdau Johannpeter and Máximo Vedoya
At the institutional level, the activities announced in last Alacero’s Board meeting, held in May in the city of Bogota, will be continued with respect to opening a similar organization to the Santiago office in the city of Sao Paulo. These activities will continue in the coming months.
With this, it is estimated to meet several objectives, such as presence in the region main steel market, be located in a world-class industrial center that will intensify work with the value chain of the industry, and be located in a center of a strong media coverage.
It was also announced that the next Alacero-59 Conference will be held in the city of Cartagena de Indias, Colombia, in November 2018.