According to data released by the Latin American Steel Association (Alacero), in December last year Latin American crude steel production totaled 4.5 million mt, falling by 12 percent year on year. According to the association, decreasing competitiveness and consumption affected the market negatively, due to unfair competition and the high costs in the domestic market.
In 2019, Latin America’s crude steel production declined by nine percent compared to 5.7 million mt observed in 2018, driven by a 56 percent decrease in Brazil, a 30 percent drop in Mexico and a nine percent fall in Argentina.
In contrast, China’s crude steel production rose by eight percent in 2019 year on year, while China accounted for 25 percent of Latin America’s import volume. In addition, antidumping actions in Latin America increased from 66 to 74 in the last quarter and 50 of these actions were against China.
Meanwhile, the region’s rolled steel production totaled 3.6 million mt in December, falling to the lowest level in three years and indicating a drop of 11 percent year on year, decreasing for the fourth consecutive month, according to Alacero.
“The future outlook is uncertain from the coronavirus epidemic that could affect world trade, as the World Trade Organization (WTO) warned. Latin America faces a process of economic contraction that weighs on the development of the industry and influences its productivity,” commented the association.