January to April 2015 displayed a growth of 4% in finished steel consumption boosted by imports.  Crude steel production declined by 1% and finished steel production remained at the same level from January/April 2014.  Alacero reports that foreign imports supply 24% of regional consumption and the trade balance continues to deteriorate.  

Production

Crude Steel. In Jan/Apr 2015, Latin America and the Caribbean produced 21.4 million tons of crude steel, 1% less than the volume recorded in the same period of 2014. Brazil participated with 53% of the regional production (11.3 million tons), growing 1%.

Finished Steel. In the same period, Latin America produced 18.6 million tons of finished steel, growing versus 2014. Brazil was the main producer (8.4 million tons), 45% of the Latin American output. Mexico was second (5.8 million tons), and 31% share. With growth rates of 11% and 7% respectively, Peru and Ecuador were the countries that showed the greatest increases in the production of finished steel versus 2014. On the other hand, Argentina´s production fell 9%.

Finished steel consumption. During the first four months of the year, the regional finished steel consumption reached 23.7 million tons, up 4% vs Jan/Apr 2014. The largest increases in consumption (volume and percentage terms), were recorded in Mexico (947 thousand additional tons, an increase of 13%), Peru (177 thousand additional tons, up 19%) and Chile (93 thousand additional tons, up 11%). Conversely, the Brazilian finished steel consumption shrank by 361 thousand tons, down 4% vs Jan/Apr 2014. Argentina also described a 6% drop in consumption of finished products, 113 thousand tons less than the first four months of 2014.

Trade Balance

Imports. In the first four months of 2015, Latin America imported 8.1 million tons of finished steel, 15% above the level of Jan/Apr 2014 (7.1 million). Currently, imports of finished steel represent 34% of the regional consumption, which brings about disincentives to the local industry, trade frictions and threatens jobs.
Exports. Latin American exports of finished steel reached 2.5 million tons, decreasing 4% vs Jan/Apr 2014.
Balance deficit. In the first four months of 2015, the region recorded a finished steel trade deficit of 5.7 million tons. This imbalance is 25% deeper than that the one observed one year ago (4.5 million tons). Between January and April 2015, none of the Latin American countries presented a surplus in the finished steel trade. The largest deficit was recorded in Mexico (-2.3 million tons), followed by Colombia (-667 thousand tons), Peru (-628 thousand tons) and Chile (-593 thousand tons). The evolution of trade flows and the balance appear in Graph 02.

Production May 2015 - Advance Information
Advance information for May 2015 indicates that crude steel production reached 5.7 million tons, 4.3% above April 2015 and 3% more than May 2014. Production of finished steel closed at 4.7 million tons, the same level as the previous month and decreasing 2% versus May 2014. For the first five months of 2015, crude steel production reached 27.1 million tons, in line with same period of 2014. Finished steel production reached 23.3 million tons, also in line with Jan/May 2014.

For more information, read the full press release from Alacero.

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Alacero –the Latin American Steel Association– is the organization that brings together the Steel Value
Chain of Latin America to promote the values of regional integration, technological innovation, corporate
responsibility, excellence in human resources, safe working environments, and social and environmental
sustainability. Founded in 1959, Alacero is formed by 50 companies in 25 countries, whose production –of
about 70 million annual tons– represents 95% of the steel manufactured in the region. Alacero is a Special
Consulting Organization to the United Nations and is recognized as International Non-Government Organization
by the Republic of Chile, host country of Alacero´s headquarters.