Regional finished steel consumption in the first quarter of 2016 in Latin America continues to reflect the financial difficulties being experienced by the region. Both finished steel consumption and crude steel production posted double-digit falls, while the trade balance of the region remains negative, Kallanish learns from regional steel producers’ association Alacero.

In the first quarter of 2016 Latin America and the Caribbean produced 13.9 million tonnes of crude steel, or -13% less compared to the same period in 2015. Brazil, which produces 53% of the regional output showed a -12% y-o-y reduction to 7.4mt. Regional finished steel output in the first three months of the year totalled 12.4mt, or -10% less y-o-y. Brazil was the main producer, with 5.1mt, or 41% or the regional output, followed by Mexico which produced 4.6mt or 37% of LatAm output.

Between January and March, finished steel consumption shrank by -17% y-o-y to 15.4mt. The largest increases in consumption, in absolute and percentage terms, were recorded in Chile (additional 24,000t, an increase of 3%), and Guatemala (8,000 additional tonnes, up 3%). Rolled steel consumption in Brazil during the first quarter 2016 shrank by -32% y-o-y to 2mt. Peru, Argentina and Colombia meanwhile recorded declines of -8% -6% and -1% respectively.

Of Latin America`s total steel consumption in the first three months of 2016, 50% was made up by flat products (6.2mt), 48% by long products (5.9mt) and 2% by seamless tubes (219,000t), Alacero says.

The region imported 5.3mt of finished steel in the first quarter. This is -22% less compared to the same period in 2015 (6.8mt). Of this total, 65% corresponds to flat products (3.4mt), 33% to long products (1.7mt) and 2% to seamless tubes (106,000t). Imports represent 34% of regional finished steel consumption, Alacero says.

Regional exports of finished steel totalled 2.2mt in the first three months of 2016, or 11% more compared to the same period in 2015.  Of this total, 55% was in the form of flat products (1.2mt), 37% were long products (827,000t) and 7% were seamless tube (163,000t).

Between January and March 2016, Latin America saw a trade deficit of 3.1mt of finished steel. This imbalance is -36% lower compared to the same period in 2015 (4.8mt).