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Latin America finished steel imports continue to grow faster than consumption

Steel News - Published on Mon, 01 Dec 2014

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Figures for the nine first months of 2014 continue to show no growth for the Latin American finished steel market. Regional crude steel production remained at the same level than during the first 3 quarters of 2013; while finished steel production decreased 1%. Meanwhile, consumption grew only 2% and is being increasingly supplied by imports.

Finished Steel imports continue to gain market share and already account for 33% of the Latin American consumption. Regional trade balance continues to deteriorate and in January to September 2014, deficit (in tonnes) deepen by 20% YoY.

Production
During the first 9 months of 2014, Latin America and the Caribbean produced 49.2 million tonnes of crude steel, in line with January to September 2013. Brazil represented 52% of the regional output (25.6 million tons), but displayed a slight drop of 1% YoY In percentage terms, crude Steel production grew more markedly in Argentina (+8%), Mexico (+6%) and Peru (+3%). Venezuela and Chile, on the other hand, displayed drops of -43% -17%, respectively.

In the same period, Latin America produced 37.6 million tonnes of finished steel, 1% less YoY. Brazil ranked first with an output of 18.8 million tonnes and 45% share of the regional production. It was followed by Mexico (13.1 million tonnes, 31% share). Increasing their production by 13% and 10% respectively, Colombia and Mexico displayed the most marked finished steel production expansions YoY. Venezuela and Chile dropped 41% and 23%, respectively.

Advance information of October 2014 indicates that crude steel production reached 5.9 million tonnes in this month, 2% more than in October 2013. Finished steel production closed at 4.9 million tonnes, in line with the same period of 2013. In January to October 2014, crude steel production accumulated 55 million tonnes, at the same level than one year ago. Production

Trade balance
Between January to September 2014, Latin America imported 17,4 million tonnes of finished Steel, 9% more YoY (14,9 million tonnes). Comparing current imports volume to that observed at the beginning of this decade (Jan/ Sep 2010), imports expansion reaches 26%. At present, finished steel imports represent 33% of the regional consumption. This entails the loss of local industry\'s share and more pressure on the regional market.

Meanwhile, exports got to 5.9 million tonnes, falling 8% YoY. Between January to September 2014, the region built up a trade deficit of -11.4 million tonnes. This unbalance is 20% deeper than one year ago, as it reached -9.5 million tonnes during the first three quarters of 2013.

In January to September 2014, every country in Latin America and the Caribbean presented finished steel trade deficits. The most important unbalance corresponds to Mexico (-3.6 million tonnes), followed by Colombia (-1.8 million tonnes), Peru (-1.5 million tonnes) and Chile (-1.1 million tonnes).

Finished steel consumption
During the first three quarters of 2014, regional finished steel consumption reached 52,5 million tonnes, growing 2% YoY. The most significant increases in consumption (both in volume and percentage growth) were registered in Mexico (2.1 million additional tons and 14% increase), Peru (489,000 tonnes, +23%), Colombia (+448,000 tonnes, +17%) and Argentina (+130,000 tonnes, +3%). On the other hand, Venezuela, Brazil and Ecuador displayed strong drops. Brazilian consumption reached a 5% drop, equivalent to 1 million tonnes less YoY. This decline accentuated during the period June to September, when volume consumed was 12% lower than during the same months of 2013.


of finished products reached 46.9 million tonnes, down 1%.

Source – Strategic Research Institute, Steel Guru

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Posted By : admin on Mon, 01 Dec 2014
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