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Steel News September 15, 2020 09:40:58 PM

LatAm Steel Sector Recovery Driven by Furnace Restarts

Paul Ploumis
ScrapMonster Author
The crude steel production by the region totalled 4.450 million tonnes (Mt) during the month of July this year.
LatAm Steel Sector Recovery Driven by Furnace Restarts

SEATTLE (Scrap Monster): The fast recovery in construction sector is seen driving steel production and consumption in regional countries, said the latest report published by the Latin American Steel Association (Alacero). However, the return to normality is likely to take more time, it noted.

The crude steel production by the region totalled 4.450 million tonnes (Mt) during the month of July this year. This is significantly higher by 20% when compared to the prior month. Several blast furnaces in the region restarted operations after shutdown of nearly four months owing to pandemic. However, upon comparison with the same month a year before, the production levels were still lower by 9% during the month. The three primary producers in the region-Mexico, Brazil and Argentina registered increased production.

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The Latin American trade balance registered decline by 21% in Q2 this year, in comparison with the prior quarter. The Q2 trade balance stood at 12,410 Mt. Also, imports accounted for 39% of the total consumption during the quarter, as compared with 36% in the previous quarter. The total exports represented 16% of production during the initial six-month period of the year.