Latin America's Finished Steel Trade Deficit Surged 18%: ALACERO

SEATTLE (Scrap Monster): The latest trade figures released by the Latin American Steel Association (Alacero) indicate that apparent steel consumption by the region recorded strong growth during the initial eight months of 2017. The steel crude and finished steel production by the region too climbed higher. Also, the trade deficit soared by 18% when compared with the year before.

The Latin American crude steel production totaled 42.4 million tons (Mt) during the first eight months of 2017. The production volumes were 8% higher when compared with the corresponding period last year. The region’s crude steel output had totaled 39.3 Mt during Jan-Aug ’16. The leading steel producer in the region was Brazil, which accounted for 53% of the regional production. With production totaling 22.5 Mt, the country recorded 9% year-on-year jump during Jan-Aug ’17.

The production of finished steel edged higher marginally by 3% during Jan-Aug ’17. The finished steel production touched 35.1 Mt. Brazil was the main producer of finished steel. The country’s output totaled 14.7 Mt, accounting for 42% of Latin American output. In second place was Mexico with an output of 12.6 Mt. The country accounted for 36% share of the regional output.

The region’s finished steel consumption totaled 44.3 Mt, higher by 5% when matched with 42.3 Mt during Jan-Aug ’16. The largest jump in consumption was reported by Mexico. The country’s finished steel consumption grew by 8%. Brazil, Costa Rica, Argentina and Chile too recorded increased consumption. On the other hand, Bolivia reported considerable decline in consumption during the eight-month period. The other countries to report notable decline in consumption were El Salvador (-14%), Venezuela (-8%) and Honduras (-6%).

During the first eight months of 2017, Latin American region imported 14% more finished steel. The imports by the region totaled 14.5 Mt, as compared with 12.8 Mt in Jan-Aug 2016. Also, the regional exports of finished steel recorded 9% increase over the previous year to total 6.3 Mt. The finished steel trade deficit of 8.3 Mt during this period was 18% higher over the previous year deficit of 7.0 Mt.

The advance information for the month of September states that crude steel production by the region has reported year-on-year growth of 6%. The monthly output is estimated to touch 5.4 Mt, whereas the cumulative output during the first nine months of the year is likely to remain higher by 8% year-on-year at 47.8 Mt. Also, finished steel consumption for Sep ’17 and Jan-Sep ’17 are likely to touch 4.4 Mt and 39.5 Mt respectively.