According to a report by Latin American steel association Alacero, crude steel production in Latin America totaled 11.3 million tons during the first two months of 2012--a 5.6 percent year-over-year increase. Just in February, 5.8 million tons were produced, led my Mexican production, which was 18 percent higher compared to February 2011. Together, Brazil and Mexico accounted for 79 percent of the regional crude steel production during January and February with an increase of 5 and 11 percent, respectively, compared with volumes in the same period a year ago. While Trinidad and Tobago and Venezuela's crude steel production actually declined during January-February 2012; other Latin American nations reported positive results.
The region's finished steel trade deficit in January was 1.2 million tons, more than double the 0.5 million ton deficit in January 2011. Alacero attributed the increase to a deepening deficit in Brazil, Colombia, Mexico and Peru.
Apparent steel use in Latin America reached 4.9 million tons in January 2012, up from 4.4 million tons in the same month a year ago. Brazil and Mexico once again led overall consumption, together accounting for 3.5 million tons--70 percent of the regional demand. Argentina, Chile and Mexico experienced minor drops in their steel consumption in January.
Finished steel production in January-February reached 9.1 million tons; just in February, finished steel production was 4.7 million tons, a 5 percent increase. In the January-February 2012 period, production dropped in Argentina and Trinidad and Tobago, while Brazil kept similar levels as registered during the first two months of 2011.