Steel Output Boost to Propel LatAm Industry Revival

SEATTLE (Scrap Monster): The Latin American Steel Trade Association (ALACERO) stated that increased steel production is the key to the region’s recovery.

The press release published yesterday noted that crude steel production recorded the best month of production during the year, clocking 5.294 million tonnes (Mt). The recovery was visible in almost countries in the region, but was mainly led by Brazil. The Mexico-based Altos Hornos- the region’s largest integrated steelmaker recorded production of 2.766 Mt, significantly higher by 8.4% when compared with the prior month.

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Bulk of the steel was supplied to domestic markets. The data for the month of October 2020 suggests that steel exports from the Latin American region recorded sharp fall by 30.3%. At the same time, imports witnessed a surge by almost 11% in relation to the prior month. The accumulated deficit during the initial ten-month period of 2020 stood lower by 17.2% in comparison with Jan-Oct ’19. The region’s rolled steel products consumption recorded the highest level of 2020.

The steel trade body expressed deep concerns over growing Chinese investment in Latin American countries, which it fears would create greater dependency, which in turn could become a risk factor. The regional industry should ensure access to modern technologies and boost in infrastructure facilities.