Latin American finished steel production in January-November 2017 totaled 48.6 million mt, up 3% on the year-ago period, regional steel organization Alacero said Tuesday.
Brazil was the main producer with output of 20.7 million mt of finished steel, accounting for 43% of the total, Alacero said in a statement. Mexico was second with 17.2 million mt, or 35% of regional output.
Crude steel production in the period grew 7% year on year to 58.8 million mt, it said. Brazil was the main producer, with 31.5 million mt (54% of the total), up 9% from the first 11 months of 2016.
Apparent consumption of finished steel was 4% higher year on year at 60.7 million mt.
"Of Latin America's total steel consumption, 57% corresponds to flat products (34.6 million mt), 41% to long products (24.9 million mt) and 2% to seamless tubes (1.2 million mt)," Alacero said.
The largest increases in consumption -- in absolute terms -- were recorded in Mexico (additional 1 million mt, an increase of 4%), Brazil (800,000 mt, up 5%), Argentina (209,000 mt, up 5%), Ecuador (183,000 mt, up 13%), Dominican Republic (37,000 mt, 9%), Chile (35,000 mt, up 1%), Paraguay (25,000 mt, up 9%) and Colombia (20,000 mt, up 1%).
Conversely, in the same period, Venezuela, Bolivia and Panama recorded declines of 17%, 15% and 11%, respectively.
Imports of finished steel products in the period reached 19.2 million mt, up 6% from a year ago. Of the total, 70% were flat products (13.5 million mt), 27% were long products (5.2 million mt) and 3% seamless tubes (514,000 mt).
"Currently, imports represent 32% of the regional finished steel consumption, which brings about disincentives to the local industry, trade frictions and threatens jobs," Alacero said.
The region's exports reached 8.8 million mt, up 11% year on year. Of this total, 50% were flat products (4.4 million mt), 41% were long products (3.6 million mt) and 9% were seamless tubes (805,000 mt). Thus it registered a steel trade deficit of 10.4 million mt during January-November. Alacero said this was 3% higher than in the same 11 months in 2016 (10.1 million mt). "Brazil and Argentina were the only countries to maintain a trade surplus of finished steel, 3 million mt and 110,000 mt, respectively," Alacero said. "The largest deficit was recorded in Mexico (4.9 million mt), followed by Colombia (2.1 million mt), Chile (1.5 million mt) and Peru (1.3 million mt)." Alacero estimated that in December, regional finished steel production came to 4.5 million mt, a 20% year on year increase and similar to November, and crude steel output was 5.4 million mt, up 15% year on year but down 1% on the month. For 2017, it estimated finished steel production of 53.1 million mt, up 5% versus January-December 2016 (50.8 million mt), and crude steel volume of 64.1 million mt, up 7% from a year earlier (59.7 million mt).
