Finished steel demand in Latin America grew 2% over the first five months of 2015, triggered by an increase in imports, according to Alacero, the Latin American Steel Association.
Imports, claims Alacero, already satisfy 34% of regional consumption and with regional production of both crude and finished steel decreasing – down 2% when compared with the January to May 2014 period – the regional trade balance continues to deteriorate.
During the first five months of 2015 the deficit in tonnes increased 17% versus the same period last year.
With weak demand converging with sustained import growth, the overall scenario for the Latin American region is unfavourable. However, slow-growing regional and global markets are hampering exports from the region.
Between January and May 2015, Latin America produced 22.9Mt of finished steel, 2% lower than in the same period in 2014. Brazil ranked first (10.1Mt) accounting for 44% of regional output. Mexico was second (7.3Mt) taking a 32% share of output.
Peru increased its annual finished steel production by 10% with Columbia and Ecuador a close second at 8% apiece. In Argentina, production fell by 11%.
In terms of finished steel consumption for the period, the largest increases in absolute and percentage terms were recorded in Mexico (up 11%) Peru (up 12%) and Chile (up 9%). Consumption in Brazil was down 8% when compared to the same period last year and Argentina was down 7%.
Latin America and the Caribbean produced 26.8Mt of crude steel, down 2% on the same period in 2014. Brazil accounted for 53% of regional production (14.3Mt) up 2% year-on-year, Alacero claims.
In terms of trade balance, the Latin America region imported 10.2Mt of finished steel during the first five months of 2015, up 11% when compared to 2014. Imports currently represent 34% of regional finished steel consumption, causing disincentives for local industry, trade friction and employment uncertainty.
During the first five months of the year, the region recorded a deficit of 6.9Mt of finished steel, 17% deeper than last year (5.9Mt). In fact, only Brazil showed a trade surplus (28Mt) while the largest deficit was recorded by Mexico (down 2.9Mt).
Deficits were also recorded in Columbia (down 852kt); Chile (down 749kt); and Peru (down 724kt).
Looking ahead to June 2015 figures, crude steel production reached 5.5Mt, down 1% on May and up 4% on June 2014 figures.
Finished steel production in June closed at 4.6Mt, down 1% when compared with May and roughly in line with June 2014 figures.
Crude steel production during the first semester of 2015 was 32.3Mt, a 1% year-on-year drop. Finished steel production (27.4Mt) was down 2% when compared with January to June 2014.
Source: Steel Times International
- metaljunction »
- Metal News
Metal News & Events
METALJUNCTION PUBLICATIONS
Coal Insights (English) Monthly
Coal Insights is a ready reckoner for anyone associated with coal. This publication is aimed at tracking everything related to coal in India.
India Coal Market Watch(English) Monthly
ICMW is a one-stop source for all news, data and research pertaining to coal demand, consumption, stocks, spot- and long-term prices with respect to the Indian Market.
India Steel Market Watch (English) Monthly
ISMW is a brand new high-end steel market report, covering all aspects of the steel industry in India.
Steel Insights(English) Monthly
Steel Insights delves into various facets of the domestic and global steel industry such as market fundamentals, raw material price trends, price forecasts etc.