Latin American steel production increased year-on-year during in the first five months of 2018, while consumption was almost flat over the same period of 2017, Kallanish learns from regional steel producers' association Alacero. This positive performance also continued into June, according to preliminary data.

During the January-May period, Latin American crude steel output reached 27.1 million tonnes, up 3% on-year. Brazil, the region’s largest crude steel producer with a 53% regional share, saw its production also rise by 1% y-o-y to 14.3mt.

Finished steel production totalled 24.0mt to end-May, an increase of 6% y-o-y. Brazil and Mexico were the largest producers with output of 9.8mt and 8.3mt, respectively.

Meanwhile, finished steel consumption in the period was 28.7mt, or only 29.000t more on-year. From this total, 57% or 16.35mt of consumption was flat products, while longs comprised 41% at 11.7mt and seamless pipe made up 2% or 584,000t.

During January-May, the largest increases in steel use in both absolute and percentage terms were recorded in Brazil, Argentina and Ecuador. Brazil consumed 531,000t of finished steel, up by 7% y-o-y, while Argentinian consumption totalled 369,000t, or 19% more y-o-y. Ecuador used 68,000t, up by 9% on-year.

Alacero’s preliminary data for June shows that crude steel production in Latin America reached 5.4mt, or 6% more compared to the same month in 2017 and 4% on May. Cumulative output in the first half of 2018 was 32.6mt, up 3% compared to H1 2017.

In June alone, regional finished steel output was 4.5mt. This was 2% increase y-o-y and -2% less than in May. Over H1 it was 5% higher y-o-y at 28.5mt.