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Latin America: Finished Steel Production Grows 4% While Imports Increase 32% in Jan/Feb 2015
04/28/2015 - Finished steel in Latin America – Jan/Feb 2015 vs Jan/Feb 2014: > Production increases 4%. > Apparent steel use grows 8% > Total imports rise 32%
Figures for the first two months of 2015 showed an increase in steel production and consumption in Latin America, unlike the previous months. Regional crude steel production increased 3% while finished steel production raised 4% vs Jan/Feb 2014. Apparent steel consumption increased 8% and continues to be increasingly supplied by imports (that currently account for 37% of the regional consumption). Regional trade balance keeps on deteriorating: in Jan/Feb 2015, the deficit in tons deepened 54% vs same period of 2014.
Production
Crude Steel. In Jan/Feb 2015, Latin America and the Caribbean produced 10.8 million tons of crude steel, 3% more than the volume of Jan/Feb 2014. Brazil accounted for 52% of the regional output (5.7 million tons), showing a growth of 5%.
Finished Steel. In the same period, Latin America produced 9.3 million tons of finished steel, 4% more than in Jan/Feb 2014. Brazil was the largest producer (4.3 million tons), 46% share of the Latin American output. Mexico came second with 2.9 million tons), 32% of the regional production.
With growth rates of 8% and 7% respectively, Chile and Brazil showed the greater increases of finished steel production vs Jan/Feb 2014. Meanwhile, the output of Venezuela, Colombia and Argentina fell 15%, 6% and 5%, respectively.
Finished steel consumption
During the first two months of the year, regional finished steel consumption reached 11.8 million tons, up 8% vs Jan/Feb 2014, given the imports increase. The largest increases in consumption, both in volume and in percentage terms, were recorded in Peru (464,000 additional tons, an increase of 95%), Mexico (+408 thousand tons, +12%) and Colombia (+83 thousand tons, +13%).
On the other hand, in Brazil rolled steel consumption contracted by 181,000 tons, down 4% vs Jan/Feb 2015. Argentina also presented a significant drop of 11% in its finished steel consumption, 92,000 tons less than during the first two months of 2014.
Trade balance
Imports. In Jan/Feb 2015, Latin America imported 4.4 million tons of finished steel, 32% above the level recorded in Jan/Feb 2014 (3.3 million). Currently, finished steel imports account for 37% of the regional consumption, which brings about disincentives to the local industry, trade frictions and threatens to jobs.
Exports. Latin American exports of finished steel reached 1.3 million tons, down 1% vs Jan/Feb 2014. Balance deficit. In the first two months of 2015, the region recorded a trade deficit of 3.1 million tons of finished steel. This imbalance is 54% more profound than that observed in Jan/Feb 2014 (2 million tons).
In Jan/Febr 2015, every country in Latin America and the Caribbean showed trade deficits of finished steel. The
largest corresponded to Mexico (-931,000 tons), followed by Peru (-720,000 tons), Colombia (-433,000 tons) and
Chile (-275,000 tons).
Production March 2015 - Advance Information
Advance information of March 2015 indicates that crude steel production reached 5.5 million tons in the month, 4% less than in March 2014. Production of finished steel closed at 4.9 million tons, 3% annual growth.
In the first quarter 2015, regional crude steel production reached 16.3 million tons, unchanged vs same period of 2014, while production of finished products reached 14.2 million tons, up 3% vs Jan/Mar 2014.
Production
Crude Steel. In Jan/Feb 2015, Latin America and the Caribbean produced 10.8 million tons of crude steel, 3% more than the volume of Jan/Feb 2014. Brazil accounted for 52% of the regional output (5.7 million tons), showing a growth of 5%.
Finished Steel. In the same period, Latin America produced 9.3 million tons of finished steel, 4% more than in Jan/Feb 2014. Brazil was the largest producer (4.3 million tons), 46% share of the Latin American output. Mexico came second with 2.9 million tons), 32% of the regional production.
With growth rates of 8% and 7% respectively, Chile and Brazil showed the greater increases of finished steel production vs Jan/Feb 2014. Meanwhile, the output of Venezuela, Colombia and Argentina fell 15%, 6% and 5%, respectively.
Finished steel consumption
During the first two months of the year, regional finished steel consumption reached 11.8 million tons, up 8% vs Jan/Feb 2014, given the imports increase. The largest increases in consumption, both in volume and in percentage terms, were recorded in Peru (464,000 additional tons, an increase of 95%), Mexico (+408 thousand tons, +12%) and Colombia (+83 thousand tons, +13%).
On the other hand, in Brazil rolled steel consumption contracted by 181,000 tons, down 4% vs Jan/Feb 2015. Argentina also presented a significant drop of 11% in its finished steel consumption, 92,000 tons less than during the first two months of 2014.
Trade balance
Imports. In Jan/Feb 2015, Latin America imported 4.4 million tons of finished steel, 32% above the level recorded in Jan/Feb 2014 (3.3 million). Currently, finished steel imports account for 37% of the regional consumption, which brings about disincentives to the local industry, trade frictions and threatens to jobs.
Exports. Latin American exports of finished steel reached 1.3 million tons, down 1% vs Jan/Feb 2014. Balance deficit. In the first two months of 2015, the region recorded a trade deficit of 3.1 million tons of finished steel. This imbalance is 54% more profound than that observed in Jan/Feb 2014 (2 million tons).
In Jan/Febr 2015, every country in Latin America and the Caribbean showed trade deficits of finished steel. The
largest corresponded to Mexico (-931,000 tons), followed by Peru (-720,000 tons), Colombia (-433,000 tons) and
Chile (-275,000 tons).
Production March 2015 - Advance Information
Advance information of March 2015 indicates that crude steel production reached 5.5 million tons in the month, 4% less than in March 2014. Production of finished steel closed at 4.9 million tons, 3% annual growth.
In the first quarter 2015, regional crude steel production reached 16.3 million tons, unchanged vs same period of 2014, while production of finished products reached 14.2 million tons, up 3% vs Jan/Mar 2014.
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.
