According to a report by Latin American steel association Alacero, crude steel production in Latin America totaled 44.6 million metric tons during the first eight months of 2012, falling three percent compared to the same period of last year. In August alone, 5.8 million metric tons were produced, which was one percent lower compared to August 2011.
During the month in question, Brazil was the Latin American country with the highest crude steel production with 3.1 million mt, up four percent from 3 million mt in August 2011. Brazil was followed by Mexico with 1.6 million mt of crude steel, while Argentina saw a drop of 26 percent in its crude steel production compared to August 2011.
Meanwhile, Latin American finished steel production in January-August reached 34 million mt. In the January-August period, Brazil was responsible for 47 percent of the volume with 17.9 million mt. Mexico was the second largest finished steel producer of the region with 10.7 million mt, representing 28 percent of the region's output. In August alone, finished steel production in Latin America was 5.1 million mt, representing a five percent increase over the same month last year. Brazil and Mexico stimulated this growth with 2.4 million mt and 1.4 million mt respectively.
The region's finished steel trade deficit in the January-July period of the current year was 7.2 million mt, greater than the 4.5 million mt deficit in the first seven months of 2011. Alacero attributed the increase to a deepening deficit of 2.6 million mt in Mexico. Meanwhile, Colombia with 910,000 mt and Peru with 898,000 mt were among the countries which recorded significant trade deficits.
Apparent finished steel use in Latin America reached 38.5 million mt in the first seven months of 2012, up seven percent compared to the same period a year ago, against a production level of 33.1 million mt. Mexico, Chile and Peru led overall consumption with increases of 16 percent, 12 percent and 10 percent respectively, year on year.
In July 2012, steel consumption in Latin America amounted to 5.6 million mt, three percent higher than the consumption of the same month of 2011.