Finished Steel Trade Deficit by LatAm Region Surged 3%

SEATTLE (Scrap Monster): The Latin American Steel Market Data for the initial eleven months of 2017 released by the Latin American Steel Association (Alacero) suggests 3% increase in finished steel trade deficit by the region. The crude steel production surged higher by 7% when compared with the corresponding eleven-month period in 2016.

The region produced 58.8 million tons (Mt) of crude steel during Jan-Nov ’17, higher from 55.1 Mt of production recorded during the eleven-month period in 2016. Brazil continued to remain as the region’s leading crude steel producer. The country’s production totaled 31.5 Mt, accounting for almost 54% of the regional production during this period. The Brazilian crude steel output increased by 9% over the previous year.

The production of finished steel edged higher marginally by 3% during Jan-Nov ’17. The finished steel production touched 48.6 Mt. Brazil was the main producer of finished steel. The country’s output totaled 20.7 Mt, accounting for 43% of Latin American output. In second place was Mexico with an output of 17.2 Mt. The country accounted for 35% share of the regional output.

The Latin American region consumed 60.7 Mt of finished steel, modestly higher by 4% when matched with the consumption of 58.7 Mt recorded during the corresponding period in 2016. Mexico reported the largest jump in consumption, followed by Brazil, Argentina, Ecuador, Dominican Republic, Chile, Paraguay and Colombia. On the contrary, heavy decline in finished steel consumption was reported by Venezuela, Bolivia and Panama. The Venezuelan finished steel consumption recorded the biggest year-on-year decline of 17%.

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During the first eleven months of 2017, Latin American region imported 6% more finished steel. The imports by the region totaled 19.2 Mt, as compared with 18.0 Mt in Jan-Nov 2016. Also, the regional exports of finished steel edged higher by 11% over the previous year to total 8.8 Mt. The finished steel trade deficit of 10.4 Mt during this period was 3% higher over the previous year deficit of 10.1 Mt.

The advanced information for the month of December 2017 states that crude steel production by the region has reported year-on-year jump of 15%. The monthly output is estimated to touch 5.4 Mt, whereas the cumulative output during the entire year 2017 is likely to remain higher by 7% year-on-year at 64.1 Mt. Also, finished steel consumption for Dec ’17 and for the full year 2017 is likely to touch 4.5 Mt and 53.1 Mt respectively.

 It must be noted that the steel trade body has predicted 4% growth to regional steel demand during the current year.