Latin American steel production decreased again year-on-year both in the first ten months of 2019 and in October alone, Kallanish learns from regional steel producers’ association Alacero. The region also saw steel consumption fall to the end of September, according to Alacero data.
“With a third-quarter consumption down further than expected and a lower production level in October than the annual average, we adjusted again the regional consumption outlook to almost 65 million tonnes in 2019,” Alacero says. “The reduction in the trade deficit must be accompanied by a resumption of production levels by 2020, with the expectation of increasing consumption and strengthening the domestic market,” the association adds.
During the first ten months of 2019, Latin American crude steel output was 50.90 million tonnes, or -8% less on-year. In October alone, crude steel production was 4.90mt, down by -14% y-o-y, but 4.2% more than in September.
Ten-month finished steel output totalled 42.36mt, -7.5% lower y-o-y. During October, regional finished steel production was 4.06mt or -12% less y-o-y.
During January-September, meanwhile, finished steel consumption was 51.20mt, or -4.9% down on the same period of 2018. A key factor contributing to this result was a series of political crises in Colombia, Chile, Peru and Ecuador, in addition to the economic recession in Argentina and Mexico, Alacero.explains.
The regional steel producers’ association reports that Latin American exports grew during the period, while imports continue to decrease (see related article).