According to the latest figures from Alacero, finished steel consumption in the first month of 2017 increased by 1 percent, while the regional production of crude and finished steel increased 13 percent and 4 percent, respectively, compared to January 2016.
Meanwhile, regional steel imports represented 36 percent of Latin-American consumption in January, 3 points higher than January 2016 (33 percent). The trade balance of the region remains negative, increasing in 2 percent in deficit versus January 2016.
Latin America and the Caribbean produced 5.2 million mt of crude steel in January 2017, 13 percent higher than the volume recorded in Jan 2016 (4.6 million mt). Brazil was the main producer in the region with 54 percent of the regional production (2.8 million mt), increasing 13 percent versus Jan 2016.
In the same period, Latin America produced 4.3 million mt of finished steel, 4 percent higher than Jan 2016. Brazil was the main producer (1.8 million mt), accounting for 41 percent of the Latin American output. Mexico came second with 1.6 million mt (38 percent share of regional output).
In the first month of 2017, finished steel consumption in the region reached 5.2 million mt, up 1 percent versus Jan 2016. The largest increases in consumption—in absolute and percentage terms—were record in Mexico (additional 171,000 mt, an increase of 9 percent), Brazil (114,000 additional mt, up 9 percent) and El Salvador (67,000 additional mt, up 233 percent).
Conversely, in Argentina finished steel consumption shrank by 6,200 mt, down 16 percent versus Jan 2016, while Guatemala, Ecuador, Peru and Chile recorded declines of 59 percent, 38 percent, 18 percent and 13 percent, respectively.
From Latin America’s total steel consumption, 56 percent corresponds to flat products (3.0 million mt), 43 percent for long products (2.2 million mt) and 1 percent to seamless tubes (60,000 mt).
In January 2017, Latin America imported 1.9 million mt of finished steel, up 10 percent versus Jan 2016 (1.7 million mt). Of this total, 71 percent corresponds to flat products (1.3 million mt), 37 percent for long products (515,000 mt) and 2 percent to seamless tubes (32,000 mt).
Currently, imports represent 36 percent of the regional finished steel consumption, which brings about disincentives to the local industry, trade frictions, and threatens jobs, Alacero said.
Latin American exports of finished steel reached 792,000 mt, 24 percent more than in January 2016 (640,000 mt). Of this total, 52 percent are flat products (414,000 mt), 36 percent for long products (284,000 mt) and 12 percent to seamless tubes (93,000 mt).
During January 2017, the region recorded a trade deficit of 1.1 million mt of finished steel. This imbalance is 2 percent higher than the one observed in Jan 2016.