LatAm Steel Trade Recorded Negative Balance

SEATTLE (Scrap Monster): The recent global slowdown in economic activity and trade has impacted the Latin American steel industry activity during the month of October, noted Latin American Steel Association (ALACERO).

The region’s crude steel production has declined sharply by 14%, when matched with the production during the same month a year before. The Oct ’19 production by the region totalled 5.674 Mt. The accumulated production at 55.344 Mt during Jan-Oct ’19 stood lower by 8%, upon comparison with the cumulative production during the first ten months of 2018. Meantime, Brazil recorded growth in production.

The rolled steel production totalled 4.060 Mt, hitting the lowest level since February this year and representing a decline of 12% from the previous year. The Jan-Oct ’19 production of 42.367 Mt was 8% lower than the same period last year.

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According to ALACERO data, regional steel imports totalled 1.761 Mt in September, falling by approximately 4% from the same month in 2018. The accumulated imports until September this year were down by 3% from the previous year. The share of Chinese imports has dropped by 1% to 23% of total imports.

Meantime, the exports surged higher by 22% year-on-year to 718,000 tonnes in September this year. However, the Jan-Sep ’18 exports were still down by 6% from the year before. The exports from Argentina collapsed by 39%, whereas the Brazilian exports surged higher by 51%.

The steel trade by the Latin American region recorded a negative balance of 1.04 Mt.