Latin American Finished Steel Imports Grow 20% in 1Q 2015, While Production Increases Only 2%
05/28/2015 - According to Alacero, during 1Q 2015, crude steel production in Latin America decreased 2% while finished steel production grew 2% vs 1Q 2014.
Apparent steel use expanded by 5% and is increasingly supplied by imports (that represent 34% of Latin American consumption). The trade balance of the region continues to deteriorate: in Jan/Mar 2015, deficit (in tons) deepened 30% (vs. same period of 2014).
Production
Crude Steel. In Jan/Mar 2015, Latin America and the Caribbean produced 16 million tons of crude steel, 2% less than during 1Q 2014. Brazil accounted for 53% of regional output (8.4 million tons), growing 1%.
Finished Steel. In the same period, Latin America produced 14.1 million tons of finished steel, 2% more than in Jan/Mar 2014. Brazil was the main producer (6.6 million tons), 46% share of the Latin American output. Mexico came second (4.3 million tons) and 31% of the regional production.
Venezuela and Ecuador showed the greatest increases of production of finished steel vs Jan/Mar 2014, growing 11% and 7% respectively. On the other hand, Argentina´s production fell 8%.
Finished steel consumption
During the first three months of the year, finished steel consumption in Latin America reached 17.8 million tons, growing 5% y-o-y. The largest increases -in volume and percentage terms- were registered in Mexico (649 thousand additional tons, an increase of 12%), Peru (+163 thousand tons, 24%) and Colombia (+164 thousand tons, 17%).
Conversely, finished steel consumption in Brazil contracted by 169 thousand tons, down 3% versus Jan/Mar 2014. Argentina also presented a significant drop of 13%, 166 thousand tons less than in 1Q 2014.
Trade Balance
Imports. In 1Q 2015, Latin America imported 6.1 million tons of finished steel, growing 20% y-o-y. Currently, finished steel imports represent 34% of the regional consumption, which brings about disincentives to the local industry, increases trade frictions and is jeopardizing job positions for skilled workers.
Exports. Latin American exports of finished steel reached 2 million tons, up 3% vs Jan/Mar 2014.
Balance deficit. In the first three months of 2015, the regional finished steel trade balance showed a deficit of 4.1 million tons. This imbalance is 30% deeper than the one observed in 1Q 2014 (3.2 million tons).
In Jan/Mar 2015, Brazil was the only country of the region that showed a surplus in its finished steel trade balance (67 thousand tons). The most important deficit appeared in Mexico (-1.7 million tons), followed by Colombia (-643 thousand tons), Peru (-499 thousand tons) and Chile (-422 thousand tons).
Production April 2015 - Advance Information
Advance information of April 2015, indicates that crude steel production reached 5.5 million tons in this month, in line with April 2014. Finished steel production closed at 4.8 million tons for the month, also in line with April 2014.
During the first 4 months of 2015, crude steel production reached 21.4 million tons, a 1% drop y-o-y, while production of finished products reached 18.9 million tons, up 2% vs Jan/April 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.
Production
Crude Steel. In Jan/Mar 2015, Latin America and the Caribbean produced 16 million tons of crude steel, 2% less than during 1Q 2014. Brazil accounted for 53% of regional output (8.4 million tons), growing 1%.
Finished Steel. In the same period, Latin America produced 14.1 million tons of finished steel, 2% more than in Jan/Mar 2014. Brazil was the main producer (6.6 million tons), 46% share of the Latin American output. Mexico came second (4.3 million tons) and 31% of the regional production.
Venezuela and Ecuador showed the greatest increases of production of finished steel vs Jan/Mar 2014, growing 11% and 7% respectively. On the other hand, Argentina´s production fell 8%.
Finished steel consumption
During the first three months of the year, finished steel consumption in Latin America reached 17.8 million tons, growing 5% y-o-y. The largest increases -in volume and percentage terms- were registered in Mexico (649 thousand additional tons, an increase of 12%), Peru (+163 thousand tons, 24%) and Colombia (+164 thousand tons, 17%).
Conversely, finished steel consumption in Brazil contracted by 169 thousand tons, down 3% versus Jan/Mar 2014. Argentina also presented a significant drop of 13%, 166 thousand tons less than in 1Q 2014.
Trade Balance
Imports. In 1Q 2015, Latin America imported 6.1 million tons of finished steel, growing 20% y-o-y. Currently, finished steel imports represent 34% of the regional consumption, which brings about disincentives to the local industry, increases trade frictions and is jeopardizing job positions for skilled workers.
Exports. Latin American exports of finished steel reached 2 million tons, up 3% vs Jan/Mar 2014.
Balance deficit. In the first three months of 2015, the regional finished steel trade balance showed a deficit of 4.1 million tons. This imbalance is 30% deeper than the one observed in 1Q 2014 (3.2 million tons).
In Jan/Mar 2015, Brazil was the only country of the region that showed a surplus in its finished steel trade balance (67 thousand tons). The most important deficit appeared in Mexico (-1.7 million tons), followed by Colombia (-643 thousand tons), Peru (-499 thousand tons) and Chile (-422 thousand tons).
Production April 2015 - Advance Information
Advance information of April 2015, indicates that crude steel production reached 5.5 million tons in this month, in line with April 2014. Finished steel production closed at 4.8 million tons for the month, also in line with April 2014.
During the first 4 months of 2015, crude steel production reached 21.4 million tons, a 1% drop y-o-y, while production of finished products reached 18.9 million tons, up 2% vs Jan/April 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.
