Home / Commodities / Commodity News / Steel production in Latin America grows driven by the sustained rise in consumption

Steel production in Latin America grows driven by the sustained rise in consumption

Accumulated steel consumption from January to April registered a growth of 27.9% compared to the same period in 2020, totaling 25.1 million tons (Mt), driven by a better economic performance of the countries in the region, and especially by consumer sectors such as infrastructure, civil construction, and manufacturing.

In the month, steel consumption increased by 71.3% compared to April last year, reaching 6.7 Mt, a level higher than that observed in the same month of 2019.

From January to April, there was a 27.2% increase in total imports compared to the same period in 2020. Regarding intraregional imports, these represented 11% of total imports in April, above the 8.1% identified in the previous month. Thus, the Latin American domestic market registered growth above the 10.4% identified in the average of the first three months of the year.

In turn, intraregional exports represented 49.6% of the total exported by Latin America in April. This figure represents a growth of 7.4% compared to the previous month, a level higher than the average of 38.7% observed in the first quarter. Therefore, exports outside the region decreased and stood at 50.4%, in a movement of greater collaboration between Latin American markets. However, in the accumulated of the first four months, total exports were 13% lower than the same period last year.

source: Alacero

Commerce and consumption activities reflect the good performance of rolled production, which between January and May grew 24.8% compared to the same period in 2020 for a total of 23.2 Mt. In May, the production of rolled products increased 66.9% compared to May last year, reaching 4.96 Mt.

Crude steel production in May had a rise of 3.2% compared to April, accumulating between January and May an increase of 19.8% compared to the first five months of 2020. It should be noted that May of this year produced 48.2% more than May of last year.

“Latin American steel companies continue to respond to the challenge of a significant recovery in consumption and supporting regional trade. The Latin American market is evolving positively in its path of normalization; although imports continue to represent a risk for production and the regional market”, said Alejandro Wagner, executive director of Alacero. “Steel continues to be fundamental for the recovery from the health and economic crisis. Therefore, it is essential to strengthen the fiscal and monetary strategies of the countries of the region and guarantPoee balanced conditions of the competition”, he added.
Source: alacero

Recent Videos

Hellenic Shipping News Worldwide Online Daily Newspaper on Hellenic and International Shipping