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Steel News April 16, 2021 02:45:20 PM

LatAm Steel Consumption Soared in Early-2021

Paul Ploumis
ScrapMonster Author
The key drivers of growth in the region would be Mexico (5%) and Brazil (3.7%).
LatAm Steel Consumption Soared in Early-2021

SEATTLE (Scrap Monster): The latest report published by the Latin American Steel Association (ALACERO) points to recovery in steel consumption levels by countries in the region during the month of January 2021.

According to ALACERO, the regional steel consumption increased for the ninth month in a row during January 2021. The consumption totalled 6.09 million tonnes (Mt) during the month, which is marginally higher by 0.8% over the prior month and significantly higher by 12.7% when compared with the same month a year before.

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The steel demand in the region is likely to witness strength in the short-term. In the April update of its economic forecasts for the year, the International Monetary Fund (IMF) had predicted 6% growth to global economy. Also, the Latin American economy is expected to grow at 4.6%. The key drivers of growth in the region would be Mexico (5%) and Brazil (3.7%).

The steel imports by the region in the opening month of the year surged higher by 5.7% compared to January 2020. On the contrary, exports contracted by 27.3%. The exports accounted only for 11.4% of the region’s total production during the month. Consequently, the trade deficit increased further.