Alacero update on steel production, imports, exports and consumption in Latin America in Jan-Apr 2018
Latin American steel association Alacero announced that the steel market in Latin America and the Caribbean between January-April 2018, presented an increase of 3% in the steel consumption, meanwhile the steel crude and finished production grew 5% and 7%, respectively versus same period of 2017, reflecting the global and regional improved economic conditions. Although, imports fell 18%, regional consumption is supplied by 31% of these imports. Exports are 12% higher than Jan-Apr 2017. For its part, regional trade balance remains negative, even though it diminished 34%.
Crude steel - The region produced 22.0 million tonnes of crude steel during Jan-Apr 2018, 5% higher than the volume recorded in the same period of 2017 (20.9 million tonnes). Brazil it is still the main producer in the region with 52% of the regional production (11.6 million tonnes), increasing 4% versus Jan-Apr 2017.
Finished steel - Finished steel production reached to 18.5 million tonnes, 7% higher than registered in Jan-Apr 2017. The main producers were Brazil with 7.8 million tonnes (accounting for 42% of the Latin American output) and Mexico with 6.6 million tonnes (with 36% share of regional output).
Finished steel consumption - In the first third months of the year, the region reached to 22.4 million tonnes of finished steel consumption, 3% higher than Jan-Apr 2017 (21.8 million tonnes). Largest increases in consumption, in absolute and percentage terms, were recorded in Brazil (additional 782 thousand tons, an increase of 13%), Argentina (395 thousand tons additional tons, up 27%), and Panama (53 thousand tons additional tons, up 51%). Conversely, in the same period Uruguay, Peru and Bolivia recorded declines of 33%, 21% and 18%, respectively. From Latin-American`s total steel consumption, 57% corresponds to flat products (12.9 million tonnes), 41% (9.3 million tonnes) to long products and 2% to seamless tubes (315 thousand tons).
Imports - In Jan-Apr 2018, Latin America imported 6.9 million tonnes of finished steel, 18% less than imported during the same period of 2017 (8.4 million tonnes). Of this total, 68% corresponds to flat products (4.7 million tonnes), 29% to long products (2.0 million tonnes) and 3% to seamless tubes (182 thousand tons). Currently, imports represent 31% of the regional finished steel consumption, which brings about disincentives to the local industry, trade frictions, and threatens jobs.
Exports - Latin American exports of finished steel reached 3.4 million tonnes, 12% more than Jan-Apr 2017 (3.0 million tonnes). Out of this total, 43% are flat products (1.5 million tonnes), 44% long products (1.5 million tonnes) and 13% to seamless tubes (431 thousand tons).
Trade deficit - In Jan-Apr 2018, the region recorded a finished steel trade deficit of 3.5 million tonnes. This imbalance is 34% lower than the one observed in Jan-Apr 2017 (-5.3 million tonnes). Brazil was the only country to maintain a trade surplus of finished steel (1.0 million tonnes). Contrary, the largest deficit was recorded in Mexico (-1.3 million tonnes), followed by Colombia (-719 thousand tons), Chile (-529 thousand tons), Peru (-421 thousand tons) and Ecuador (-403 thousand tons).
Source : Strategic Research Institute