Alacero, the Latin American Steel Association, has reported substantially improved steel consumption throughout Latin American countries in 2012, although steel production declined.
Latin American crude steel production was 66 million tons in 2012, down two percent year-on-year, as apparent finished steel use reached 64.6 million tons, rising three percent compared to 2011. In 2011, Latin American crude steel production had increased by 11 percent year on year, while apparent finished steel use had risen by 2.2 percent over 2010.
In January 2013, crude steel production in Latin America was 4.8 million tons, reflecting a 10 percent decrease from January 2012. With 2.8 million mt, Brazil was the country with the highest crude steel production in January this year, followed by Mexico with 1 million mt. Crude steel production in Argentina in January this year fell 19 percent compared to January 2012.
In January of the current year, finished steel production in Latin America was 4.4 million tons, two percent more than in January 2012. Brazil and Mexico continued to be the most important finished steel producers with 2 million tons and 1.3 million tons, respectively. Finished steel output in Latin America had reached a volume of 56.4 million mt in 2012. Brazil accounted for 47 percent of this total production with 26.2 million mt, while Mexico was the second largest producer with 15.9 million mt.
Throughout 2012, the gap between Latin America's finished steel imports and exports deepened. For the whole year of 2012, the regional deficit was 11.6 million tons, while 2011 had witnessed a deficit of 8.7 million mt. The deficit in 2012 was mostly attributed to the finished steel external trading deficit of 4.1 million mt in Mexico, as well as to deficits of 1.8 million mt in Colombia, 1.5 million mt in Chile and 1.4 million mt in Peru.