LatAm Steel Exports Plunged As Domestic Demand Recouped

SEATTLE (Scrap Monster): The latest report released by the Latin American Steel Association (ALACERO) suggests that the region’s steel production returned to pre-pandemic levels.

According to the report, the rolled steel production by the region totalled 13.46 million tonnes (Mt) during the initial three-month period of the current year. This is higher by 6% when matched with the corresponding period a year before. The March 2021 production recorded significant surge by 13.1% from the prior month, primarily led by Mexico. The seamless tube production, at 96,700 tonnes, recorded 24.2% surge. The longs and flat production increased by 16.7% and 8.9% to total 2.45 Mt and 2.16 Mt respectively.

The rolled products consumption witnessed big boost from construction and manufacturing sectors, especially in three countries- Mexico, Brazil and Argentina.

The steel imports by the region registered an increase by 13.3% year-on-year in February this year and represented 35% of regional consumption. The exports from the region recorded huge decline, mainly due to notable recovery in local demand. The overall trade balance recorded reduction by 9.7%, in comparison with the prior month.

Francisco Leal, CEO, ALACERO foresees positive trajectory for steel production as well as consolidation of regional consumption in the second half of 2021.

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