Latin America: Annual finished steel production and consumption drop 5% and 8% during 2016
2017-02-27 19:30:47 [Print]
BEIJING (Asian Metal) 27 Feb 17 - The Latin American steel industry witnessed a decline in the production, consumption and trade in 2016
Meanwhile, regional steel imports represents 32% of Latin-American consumption, 2 points lower than in 2015 (34%). The trade balance of the region remains negative, despite that in 2016 the deficit in tons decreased 23% versus 2015.
Crude Steel Production:
Latin America and the Caribbean produced 53.7 million tons (Mt) of crude steel in 2016, 10% below the volume recorded in 2015 . Brazil is the main producer in the region with 53% of the regional production (30 . 2 Mt), but shows an annual contraction of 9%.
Finished steel Production:
In the same period, Latin America produced 50.6 Mt of finished steel, 5% less than 2015 . Brazil was the main producer (20 . 9 Mt), accounting for 41% of the Latin American output . Mexico came second with 18 . 7 Mt (37% share of regional output).
Finished steel consumption
During 2016, finished steel consumption in the region reached 61.9 Mt, down 8% vs 2015 . Largest increases in consumption were record in Mexico (additional 649 thousand tons, an increase of 3%), Peru (196 thousand additional tons, up 7%) and Bolivia (45 thousand additional tons, up 8%).
Conversely, in Brazil finished steel consumption shrank by 3.1 Mt, down 14% vs 2015 . While Argentina, Chile, Colombia and Ecuador recorded declines of 20%, 8%, 5% and 9% respectively.
From Latin-American`s total steel consumption, 53% corresponds to flat products (32.7 Mt), 45% for long products (27 . 8 Mt) and 1% to seamless tubes (732 thousand tons).
Imports:
In 2016, Latin America imported 19.8 Mt of finished steel, down 14% vs 2015 (23 . 1 Mt) . Of this total, 65% corresponds to flat products (12 . 9 Mt), 33% for long products (6 . 5 Mt) and 2% to seamless tubes (446 thousand tons).
Currently, imports represent 32% of the regional finished steel consumption, which brings about disincentives to the local industry, trade frictions, and threatens jobs.
Exports:
Latin American exports of finished steel reached 8.7 Mt, same level that 2015 (8 . 7 Mt) . Of this total, 49% are flat products (4 . 3 Mt), 41% for long products (3 . 6 Mt) and 10% to seamless tubes (884 thousand tons).
Trade deficit:
In 2016, the region recorded a trade deficit of 11.1 Mt of finished steel . This imbalance is 23% lower than the one observed in 2015 (14 . 4 Mt).
In the same months, Brazil was the only country to maintain a trade surplus of finished steel, 3.3 Mt . The largest deficit was recorded in Mexico (-4 . 7 Mt), followed by Colombia (-2 . 3 Mt), Peru (-1 . 5 Mt) and Chile (-1 . 5 Mt).
. During the year, the finished steel consumption decreased 8% and the production of crude and finished steel fell 10% and 5% YOY respectively, vs 2015 . On the other hand, 2017 should be a year of recovery.Meanwhile, regional steel imports represents 32% of Latin-American consumption, 2 points lower than in 2015 (34%). The trade balance of the region remains negative, despite that in 2016 the deficit in tons decreased 23% versus 2015.
Crude Steel Production:
Latin America and the Caribbean produced 53.7 million tons (Mt) of crude steel in 2016, 10% below the volume recorded in 2015 . Brazil is the main producer in the region with 53% of the regional production (30 . 2 Mt), but shows an annual contraction of 9%.
Finished steel Production:
In the same period, Latin America produced 50.6 Mt of finished steel, 5% less than 2015 . Brazil was the main producer (20 . 9 Mt), accounting for 41% of the Latin American output . Mexico came second with 18 . 7 Mt (37% share of regional output).
Finished steel consumption
During 2016, finished steel consumption in the region reached 61.9 Mt, down 8% vs 2015 . Largest increases in consumption were record in Mexico (additional 649 thousand tons, an increase of 3%), Peru (196 thousand additional tons, up 7%) and Bolivia (45 thousand additional tons, up 8%).
Conversely, in Brazil finished steel consumption shrank by 3.1 Mt, down 14% vs 2015 . While Argentina, Chile, Colombia and Ecuador recorded declines of 20%, 8%, 5% and 9% respectively.
From Latin-American`s total steel consumption, 53% corresponds to flat products (32.7 Mt), 45% for long products (27 . 8 Mt) and 1% to seamless tubes (732 thousand tons).
Imports:
In 2016, Latin America imported 19.8 Mt of finished steel, down 14% vs 2015 (23 . 1 Mt) . Of this total, 65% corresponds to flat products (12 . 9 Mt), 33% for long products (6 . 5 Mt) and 2% to seamless tubes (446 thousand tons).
Currently, imports represent 32% of the regional finished steel consumption, which brings about disincentives to the local industry, trade frictions, and threatens jobs.
Exports:
Latin American exports of finished steel reached 8.7 Mt, same level that 2015 (8 . 7 Mt) . Of this total, 49% are flat products (4 . 3 Mt), 41% for long products (3 . 6 Mt) and 10% to seamless tubes (884 thousand tons).
Trade deficit:
In 2016, the region recorded a trade deficit of 11.1 Mt of finished steel . This imbalance is 23% lower than the one observed in 2015 (14 . 4 Mt).
In the same months, Brazil was the only country to maintain a trade surplus of finished steel, 3.3 Mt . The largest deficit was recorded in Mexico (-4 . 7 Mt), followed by Colombia (-2 . 3 Mt), Peru (-1 . 5 Mt) and Chile (-1 . 5 Mt).