Latin American steel association Alacero has unveiled perspectives for steel demand in the region during the second half of 2022 and 2023.
For the second half of 2022, steel demand is set to maintain the same level of 2021, still lower than in the pre-pandemic level. Such stagnation would derive from the reduced activity of the civil construction sector, due to the downturn of the economy, high interest rates and reduced governmental expenditures.
Doubts remain for the auto industry, due to remaining logistic problems and semiconductors shortage, while the machinery and equipment sectors should be affected by a low level of investments and shortage of demand, with the possible exception for agriculture machines.
For 2023, Alacero expects a small increase from 2022, forecasting 1.3 percent growth in the civil construction sector in Brazil, and a more robust performance in Mexico.
For the auto industry, the problems related to the availability of semiconductors should be solved between 2023 and 2024, resulting in increased production in Brazil and Mexico, the latter receiving additional demand from the US.
For the machinery and equipment sector, there are perspectives for increased investments in Brazil, while a poorer performance is expected for Mexico, due to low GDP growth. In Argentina, uncertainties are expected due the electoral period.
According to Alacero, the apparent consumption of steel products in Latin America was 74.8 million mt in 2021, and is expected to reach 68.8 million mt in 2022 and 77.8 million mt in 2023.
