ALACERO: LatAm Finished Steel Production Slumped 5%

SEATTLE (Scrap Monster):  The Latin American finished steel production reported 5% year-on-year decline from January 2018, says the latest monthly production statistics released by the Latin American Steel Association (ALACERO). The regional production totaled 4.2 million tons (Mt) in January this year.

The primary producer was Brazil with an output of 1.8 Mt. The country accounted for almost 43% of the total Latin American output. The second largest producer was Mexico. The country produced 1.6 Mt of finished steel in Jan ’19.

Meantime, the crude steel production by the region totaled 5.28 Mt during the initial month of 2019. This is marginally lower by 1% when compared with the output of 5.32 Mt recorded in January last year. Brazil, with a total output of 2.9 Mt, emerged as the largest producer. The country accounted for 56% of the regional output. Also, Brazil’s crude steel output grew by 2% over the previous year.

The Latin American demand for steel remained extremely dull during the start of the year. This is mainly attributed to the decline in infrastructure investment in the region, global financial weakness and notable decline in commodity prices. The consumption dropped by 4% from 5.6 Mt in January 2018 to 5.4 Mt in January this year. The countries which reported increased steel consumption include Colombia, Guatemala and Peru. On the other hand, Brazil, Mexico and Argentina witnessed sharp fall in consumption levels.