Posted on 29 Jun 2021
Latin America saw its steel trade deficit widen 12% month-on-month in March to 1.6 million tonnes. The deficit was 53.4% wider year-on-year. According to steel producers' association Alacero’s latest report, imports continued to represent 35% of regional consumption. The region could see in the coming months intake reaching its highest level in years.
“In 2021 we saw a curve of recovery in consumption first, and after that in production following 30-40% declines in April and May 2020,” comments Alacero chief executive Alejandro Wagner in an interview with Kallanish. “Today, we are already producing and consuming steel in the region practically at the same level or a little more, an additional 5% versus 2019. It is very encouraging, although there is still the need to wait for the evolution of vaccinations, all fiscal measures and also mobility in the region, which make it unclear how the curve will develop. So, we are very cautious to forecast the production levels this year, although the recovery is a fact.”
The expectation is that consumption will remain on a positive trajectory and the trade deficit will be brought under control in the second half of the year. How the excessive rise in steel prices will affect the demand recovery in the region, as well as what measures must be taken to boost post-Covid-19 steel consumption are, among others, topics Wagner discusses in the full interview.
Latin America imported 2.35mt of steel in March, 20.9% more over February and 27.5% higher y-o-y. Of this, 1.72mt were flat products, while longs and seamless tube reached 602,400t and 35,600t, respectively. First-quarter imports reached 6.41mt, up 15% y-o-y.
Meanwhile, March exports of finished steel reached 756,900t, up by 44.7% on-month but down 6.1% y-o-y. Longs shipments reached 332,000t, while flats exports amounted to 359,400t and seamless tubular products were 65,500t. Cumulative Q1 exports amounted to 1.8mt, 17% lower on-year.
The largest deficit during the month was seen in Mexico, which imported 831,900t of finished steel more than it exported. From a total of 1.08mt of steel imported into the country in March, 943,700t was flats. Mexican exports were 254,300t, with longs representing 136,000t.
The next-largest deficits were in Colombia and Chile with 212,700t and 168,500t, respectively.
In March Brazil had a surplus of 95,100t. The country imported 277,500t of steel, of which 167,200t were flats. Meanwhile, exports reached 372,600t, with flats comprising 249,300t.
Argentina saw its March trade deficit reach 13,800t. Entries were 59,400t, with flats having a 63.8% share. The country exported 45,600t of finished products, of which 19,900t were flats and 14,100t longs. Argentinian seamless tube exports reached 11,600t, representing 17.7% of total LatAm tubular shipments in March, data show.
Source:Kallanish
