LatAm Steel Output Dipped 9% in 2019

SEATTLE (Scrap Monster): The Latin American region witnessed notable decline in crude steel production in the month of December 2019. The decline is mainly attributed to lower regional consumption, high cost of production and dumping of unfairly traded products into the lat Am market by other countries including China.

The crude steel production in December 2019 was down by 12% when compared with the same month in 2018. The cumulative production during the entire year 2019 also recorded decline from 2018. The region reported negative balance of 4.499 million tons (Mt), down by 9% from 5.704 Mt in 2018. Brazil accounted for 56% of the negative balance, followed by Mexico with 30%. Argentina contributed 9%, said the press release by the Latin American Steel Association (Alacero).

China accounted for almost one-fourth of the total steel imports by the region. The LatAm region emerged as the second largest recipient of rolled products from China, despite government’s efforts to limit imports through various anti-dumping measures. The influx of Chinese imports resulted in drastic decline in local production of rolled steel products by the region, which recorded the lowest level in almost three years.

The future prospects of LatAm steel industry is seen affected by concerns over coronavirus epidemic and slowdown in economic growth by the region.