Latin American steel exports reflect recovery of production

Latin American steel exports reflect recovery of production

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According to Alacero, the Latin American steel association, the pace of growth of steelmaking activities in Latin America continues on an upward trend, despite the prospects of an uneven recovery in Latin American countries. In October this year, Latin American crude steel production totaled 4.97 million mt, increasing by 1.7 percent year on year. In the given month, the crude steel production from blast furnaces advanced by 4.8 percent to 2.55 million mt, while the crude steel production from electric arc furnaces reached 2.51 million mt, increasing by 10.2 percent, both compared to September. 

In the same month, Latin American rolled product output totaled 4.44 million mt, increasing by 8.1 percent, while the production of seamless tubes rose by 26 percent, recording its highest growth, both compared to the previous month. In October, there were output increases of 8.4 percent in flats and 7.3 percent in long products, all month on month. 

Latin American steel exports represented 14.6 percent of the region’s production in September, reflecting the recovery of production and the reduction of the trade deficit.

In September this year, Latin American consumption totaled 5.02 million mt, increasing by 6.4 percent compared to August. In the given month, flat steel represented more than 85 percent of the recovery in consumption, while long steel represented 17.5 percent. In the third quarter this year, Latin American steel consumption totaled 14.24 million mt, increasing by 15.9 percent compared to the second quarter, reaching pre-pandemic levels. Latin American steel imports represented 27.6 percent of consumption in September.

Alacero noted that the region’s production capacities are resuming gradually, though there are no ideal conditions for a total resumption. The association expects that the support of governments will improve conditions so that the entire value chain can recover its normal levels of activity.

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