According to a report by Latin American steel association Alacero, crude steel production in Latin America totaled 33.7 million metric tons during the first half of 2012, falling two percent compared to the same half of last year. In June alone, 5.6 million metric tons were produced, which was three percent lower compared to June 2011 and down 1.75 percent compared to the previous month.
During the month in question, Brazil was the Latin American country with the highest crude steel production with 2.7 million mt, even if this was down eight percent from 3 million mt in June 2011. Brazil was followed by Mexico with 1.6 million mt of crude steel, while Argentina saw a drop of seven percent in its crude steel production compared to June 2011.
Meanwhile, Latin American finished steel production in January-June reached 28.7 million mt. In the January-June period, Brazil was responsible for 46 percent of the volume with 13.2 million mt. Mexico was the second largest finished steel producer of the region with 8.1 million mt, representing 28 percent of the region's output. In June alone, finished steel production in Latin America was 4.9 million mt, representing a six percent increase over the same month last year. Brazil and Mexico stimulated this growth with 2.2 million mt and 1.5 million mt respectively, while Argentina's finished steel production declined three percent in comparison to June 2011.
The region's finished steel trade deficit in the January-May period of the current year was 5.2 million mt, significantly greater than the 2.8 million mt deficit in the first five months of 2011. Alacero attributed the increase to a deepening deficit of 1.8 million mt in Mexico. Meanwhile, Colombia with 595,507 mt and Peru with 587,783 mt were among the countries which recorded significant trade deficits.
Apparent finished steel use in Latin America reached 28.6 million mt in the first five months of 2012, up 13 percent compared to the same period a year ago, against a production level of 23.8 million mt. Mexico, Colombia and Brazil led overall consumption with increases of 16 percent, 11 percent and 10 percent respectively, year on year.
In May 2012, steel consumption in Latin America amounted to 5.8 million mt, higher than finished steel production in the region in the given month which totaled 5 million mt.