Latin America's steel industry activity remained relatively stable in May 2026, with crude steel and rolled steel production increasing year on year and cumulative apparent consumption remaining virtually unchanged, according to data released by the Latin American Steel Association (Alacero). The regional industry association stated that imports continued to hold a significant share of the Latin American steel market despite declining both in May and in the first five months of the year, with imported products accounting for 40.5 percent of regional apparent consumption in the January-May period.
Regional steel production increases in May
According to Alacero, Latin America's crude steel production totaled 4.8 million mt in May, increasing by 9.6 percent compared with the same month of 2025, while output in the first five months of 2026 reached 23.7 million mt, up by 2.1 percent year on year. Meanwhile, rolled steel production amounted to 4.5 million mt in May, rising by 5.6 percent compared with May 2025, although cumulative production declined slightly by 0.4 percent year on year to 21.4 million mt in the January-May period.
The association reported that apparent consumption of rolled steel products decreased by 2.7 percent year on year to 6.2 million mt in May. In the first five months of 2026, regional apparent consumption totaled 31.7 million mt, remaining virtually unchanged from the corresponding period of 2025 with a marginal increase of 0.4 percent.
Imports retain high share as regional trade deficit widens
Latin America imported 2.2 million mt of steel products in May, down by 18.5 percent year on year, while imports in the January-May period decreased by 3.0 percent to 12.8 million mt, according to Alacero's data. Despite this decline, imported products represented 40.5 percent of regional apparent consumption. Import performance varied among the region's major markets, as Brazil, Chile, Argentina and Mexico registered year-to-date decreases, while Colombia and Peru recorded increases of more than 20 percent.
Alacero stated that Latin American steel exports totaled 474,000 mt in May and reached 2.7 million mt in the first five months of the year, declining by 6.7 percent year on year. Brazil was the only major steel-producing country in the region to increase its exports, while Argentina, Colombia, Mexico and Peru recorded declines. As a result, Latin America posted a steel trade deficit of 1.8 million mt in May and a cumulative deficit of 10.1 million mt between January and May 2026.
Performance across the region's steel-consuming sectors remained largely negative, the association indicated. The automotive and construction sectors were the main exceptions, with automotive activity growing by 3.5 percent in the first half of 2026, supported by Brazil, while construction activity posted a cumulative increase of 0.8 percent, driven by strong performance in Colombia and Peru and some positive signs in Argentina.
