According to a report by Latin American steel association Alacero, crude steel production in Latin America totaled 22.6 million metric tons during the first four months of 2012, increasing one percent compared to the same period of last year. In April alone, 6.1 million metric tons were produced, which was five percent higher compared to April 2011, led by 3.3 million mt of Brazilian production, up six percent year on year.
During the period in question, production increased in all countries of the region, with the exception of Ecuador, Trinidad and Tobago and Venezuela which saw decreases in their crude steel output.
The region's finished steel trade deficit in the first quarter of the current year was 3.3 million tons, significantly greater than the 1.7 million ton deficit in the first three months of 2011. Alacero attributed the increase to a deepening deficit in Mexico. In the first quarter, the deficit of Mexico represented 33 percent of the total deficit of Latin America, with a volume of 1.1 million tons. Colombia and Brazil have the highest deficits after Mexico, with 531,500 and 356,100 ton respectively. The deficit of these three countries is responsible for 60 percent of the regional total.
Apparent steel use in Latin America reached 16.6 million tons in the first quarter of 2012, up 10 percent compared to the same period a year ago. Mexico and Brazil led overall consumption, while Argentina suffered a contraction of seven percent on year-on-year basis.
Meanwhile, Latin American finished steel production in January-April reached 19.2 million tons. In April alone, finished steel production was 5.2 million tons, representing a 15 percent increase over the same month last year. In the January-April period, finished steel production fell in Argentina, Paraguay, Trinidad and Tobago and Venezuela.
In March 2012, Latin America produced 1.2 million tons less than its consumption of 5.9 million tons, with a particularly significant difference between output and consumption seen in Mexico.