Latin American Crude Steel production increases during Jan-Mar

BRAZIL May 29 2017 7:34 PM

SANTIAGO (Scrap Register): Latin America and the Caribbean during the first quarter of the year shows a positive balance in consumption and production. The finished steel consumption grew 7%, meanwhile the crude and finished steel production increase 12% and 3%, respectively, versus January-March 2016, according to the latest figures released by the Latin American Iron and Steel Institute (ALACERO).

For its part , the regional steel imports represents 34% of Latin-American consumption, two points higher than the same months of 2016 (32%). However, the trade balance of the region remains negative, increasing in 19% it deficit vs January-March 2016. 

Crude steel Production
During January-March 2017, Latin America has produced 15.2 million tons (Mt) of crude steel, 12% higher than the volume recorded in January-March 2016 (13.6 Mt). Brazil it is still the main producer in the region with 54% of the regional production (8.3 Mt), increasing 14% versus first quarter of 2016.

Finished steel Production
In the same period, the production of finished steel reached 12.8 Mt, 3% higher than registered in January -March 2016. Brazil was the main producer with 5.4 Mt, accounting for 42% of the Latin American output. Mexico came second with 4.6 Mt  with 36% share of regional output.

Finished steel consumption
In the first quarter of 2017, the region reached 16.6 Mt of finished steel consumption, 7% higher than January-March 2016. Largest increases in consumption -in absolute and percentage terms- were record in Mexico (additional 603 thousand tons (thous tons), an increase of 10%), Costa Rica (238 thous tons additional tons, up 115%) and Brasil (218 thous tons additional tons, up 5%).

Conversely, in Argentina finished steel consumption shrank by 110 thous tons, down 10% vs January-March 2016. While Bolivia, Chile, Ecuador, Guatemala, Panama and Venezuela recorded declines of 75%, 2%, 35%, 55%, 24% and 21%, respectively.

From Latin-American`s total steel consumption, 56% corresponds to flat products (9.3 Mt), 42% for long products (7.0 Mt) and 1% to seamless tubes (237 thous tons).