Steel consumption grows 6.4% in Latin America

The growth rate of steel and steel consumption continues its upward trend, despite the prospects for an uneven recovery in Latin American countries, reported Alacero.

In September, steel consumption totaled 5,025 million tons (Mt), an increase of 6.4% compared to August.

This recovery was mainly leveraged by Brazil, Mexico and Peru, respectively.

In the month, flat steel accounted for more than 85% of the recovery in consumption, while longs accounted for 17.5 percent.

Steel consumption reached 14,245 Mt in the third quarter, which represents an increase of 15.9% compared to the second quarter.

Thus, steel consumption reached the 2020 median (14,245 Mt) and began a recovery process towards levels prior to the Covid-19 pandemic.

«If the trend continues, there is a light at the end of the tunnel for the steel industry,» Alacero said in a statement.

Steel consumption

In October, crude steel production totaled 5,058 Mt, an increase of 1.7% compared to the same month in 2019.

In this period, the production of Altos Hornos grew 4.8%, to 2,546 Mt, compared to September, while the Electric Furnaces reached 2,512 Mt, a recovery of 10.2% compared to the previous month.

Regarding rolled products, October production reached 4,438 Mt, which represents an increase of 8.1% compared to September and 2.6% compared to October 2019.

The production of seamless tubes had the highest growth (26%), followed by flats, with an increase of 8.4%, and longs with 7.3 percent.

Exports played an important role in the growth of production, representing 14.6% of it in September, when the average for the first 8 months was 17.6%. This performance contributed to the reduction of the trade deficit.

Meanwhile, imports accounted for 27.6% of consumption in September, below the 34.6% identified as the average for the first 8 months of the year.

However, the excess productive capacity that the region is experiencing means that local production has a way to go.