Latin American Rolled Steel Consumption Posted Notable Recovery

SEATTLE (Scrap Monster): The latin American Steel Association (ALACERO) reported month-on-month recovery in rolled steel consumption by the region, for the first time this year. However, consumption witnessed decline over the previous year.

According to ALACERO, the consumption recovered by 6% in July, when matched with the prior month. However, the July’19 consumption stood lower by around 3.68%, compared with July last year.

ALSO READ: LatAm Rolled Steel Imports Plummeted in May

The recovery in consumption is primarily attributed to the resumption of imports from China. The entire Latin American region reported notable growth in imports from China. The imports of steel from China by the region surged higher by 5.9% in July, when compared with June this year. Mexico reported the largest growth in consumption, accounting for almost 46% of the recovery by the entire Latin American region. The Mexican consumption growth stood at 7.3% in July ’19.

Meantime, the Latin American output of crude steel and rolled steel declined by 5% and 6% in August this year. In July, the cumulative rolled steel production was lower by 6%. The proportion of imported steel in Latin American steel consumption grew by 19%in July this year, over the prior month.

The exports by the region dropped by 10% in July ’19, when compared with the month-ago and year-before periods. The Latin American steel trade balance recorded its greatest deficit in July, after April. Positive trade balances were reported by only two countries- Brazil and Argentina.