Steel Demand in Latin America Witnesses Moderate Recovery

SEATTLE (Scrap Monster):  The Latin American region continues to be affected by Covid-19 pandemic, said the latest report published by the Latin American Steel Association (Alacero). The industry is witnessing huge drop in production, though consumption has started showing signs of slight recovery.

The regional crude steel production totalled 3.648 million tonnes (Mt) in June this year, down by 3.6% from the prior month. When matched with the same month a year before, the production was down significantly by 29%. The regional production had totalled 5.174 Mt in June 2019. The accumulated production by the region totalled 25.787 Mt in the initial six-month period of the year, 19% lower from the same period in 2019, when production had totalled 31.847 Mt.

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The steel consumption recovered the most in Brazil. The country’s steel consumption surged higher by 20% in May from the prior month. The lowest recovery was reported by Mexico, where steel consumption registered 14% decline compared to April.

Commenting on the challenges before the industry, Francisco Leal, General Director of Alacero noted that the region should focus on combating unfair imports, especially from China and strengthening domestic steel demand in the region. The predicted worst GDP for the world economy in 2020 will not favour the economies of the region, he added.