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Latin America finished steel exports fall by 5pct - Alacero

Steel News - Published on Mon, 31 Dec 2018

Image Source: alacero
Latin American steel association Alacero announced that between January and November 2018, crude steel production in Latin America reached 60.0 million tonnes, 2% higher than that registered in the same period of 2017 (59.0 million tonnes). Brazil is the main producer with 53% of the regional total (32.1 million tonnes), increasing 2% versus January-November 2017. In November 2018, the volume produced of crude Steel production registered 5.3 million tonnes, 4% less than in November 2017 and 5% less than October 2018. On the other hand, the production of finished Steel was 49.9 million tonnes 3% more than in January-November 2017. The main producers are Brazil with 21.5 million tonnes (43% of the Latin American total) and Mexico with 17.6 million tonnes (35%).

Of the Latin American total production between January and November 2018,49% corresponds to flat products (24.2 million tonnes), 48% to long products (24.1 million tonnes) and 3% to seamless tubes (1.6 million tonnes).

In November 2018, the finished steel production closed at 4.5 million tonnes 1% less than in November 2017 and 2% less than in October 2018.

Consumption of finished steel
In the first ten months of the year, the consumption of finished steel registered 56.2 million tonnes, almost unchanged compared to January-October 2017 (56.4 million tonnes).

The main countries that increased their consumption, both in absolute terms and in percentage terms, were Brazil (an additional of 1.3 million tonnes and an increase of 8%), Argentina (183 thousand additional tons and an increase of 5%) and Uruguay (176 thousand tons and an increase of 20%).

In the same period, Mexico, Peru, and Venezuela registered declines of 5%, 20%, and 62% respectively.

Of the Latin American total consumption, 56% corresponds to flat products (31.8 million tonnes), 42% to long products (23.8 million tonnes) and 2% to seamless tubes (797 thousand tons).

The results demonstrate the vigor of Latin America as a crude steel producing region, as well as the growth potential of Brazil, which continued to lead the production of the region, despite the political and economic instability in the country in 2018.

According to the numbers, the region is also making progress in the production of finished steel, with a highlight for the leaders in the manufacture of these products, Brazil and Mexico. It shows even greater participation of flat products in the production of Latin America, closely followed by the production of long products.

However, the fall in flat consumption (-2.3%) is compensated by the increase in long and seamless tubes (3.0% and 4.5%) until October. This is related to the impact in Mexico due the tariffs of the United States regarding Section 232, which reflects a reduction of more than 1 million tonnes in flat products (-7.4%). This shows that especially for Mexico, we still have a long road to a potential negotiation and a final agreement with the northern neighbor and the Trump administration.

Source :

Posted By : Ratan Singh on Mon, 31 Dec 2018
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