According to Alacero, the Latin American steel association, in the first quarter this year Latin American steel consumption grew for the third consecutive quarter, driven by the construction and manufacturing sectors, with a heterogeneous economic performance among the main countries in the region, such as Mexico, Brazil and Argentina. In March this year, Latin American steel consumption rose by 27 percent year on year, reaching 6.71 million mt, 17.4 percent higher than in the same month of 2019. In the January-March period this year, steel consumption in Latin America increased by 17 percent year on year and by 5.5 percent compared to the same period in 2019, totaling 18.4 million mt.
In the first quarter this year, Latin American countries’ steel imports grew by 3.4 percentage points compared to the previous quarter. In the given period, 6.4 million mt of steel were imported, increasing by 15 percent compared to the first three months of 2020 and by nine percent compared to the first quarter of 2019. In March, 52 percent of imports came from China, reaching levels above those registered in January (30%) and February (33%). In the first quarter this year, Latin American countries’ steel exports totaled 1.8 million mt, down by 17 percent year on year and by 23.6 percent compared to the same period in 2019. This led to an increase in the trade deficit, which in the first quarter of the year was 36 percent higher than in 2020.
In March, Latin American rolled steel production grew by 13 percent compared to February. In the first quarter this year, rolled steel production and demand each increased by 17 percent compared to the first quarter of 2020, returning to pre-pandemic levels. In April, Latin American crude steel output increased by two percent compared to March.
“Demand continues to recover. These data are encouraging, although unevenly by country and sector. In addition, we must continue to pay attention to extra-zone imports, which represent a risk and displacement of production in our region. In March, imports rose 27 percent compared to the same month in 2020, half coming from China. The recovery of the steel industry and its value chain is very important for Latin America, which was a region very economically affected by the Covid-19 pandemic. For this recovery to be maintained over time, public policies that favor national and foreign private investments, stimulate economic recovery, lead to a reduction in the tax burden and an increase in productivity are needed,” Alejandro Wagner, executive director of Alacero, said.