According to a report by Latin American steel association Alacero, crude steel production in Latin America totaled 16.4 million metric tons during the first quarter of 2012, decreasing one percent compared to the same quarter of last year. In March alone, 5.8 million metric tons were produced, which was two percent lower compared to March 2011, led by 1.5 million mt of Mexican production, down seven percent year on year.
During the first quarter of 2012, production increased in Argentina, Brazil and Peru, whereas Chile, Colombia, Ecuador, Mexico and Venezuela saw decreases in their crude steel output.
The region's finished steel trade deficit in the January-February period of the current year was 2.2 million tons, significantly greater than the 0.9 million ton deficit in the first two months of 2011. Alacero attributed the increase to a deepening deficit in Mexico and Colombia. In the given period, the deficit of Mexico represented 36 percent of the total deficit of Latin America, with a volume of 769,216 tons. The noticeable deficit of Mexico is explained partly by the lowering of tariffs on iron and steel products from the beginning of 2012.
Apparent steel use in Latin America reached 10.7 million tons in the first two months of 2012, up 13 percent compared to the same period a year ago. Peru, Mexico and Brazil led overall consumption.
Meanwhile, Latin American finished steel production in January-March reached 14.1 million tons. In February alone, finished steel production was 5.1 million tons, representing a three percent increase over the same month last year. In the January-March period, finished steel production fell in Argentina, Paraguay, Trinidad and Tobago and Venezuela, while the other countries of the region saw their levels of production increase in both March and the first quarter. However, the production increases were smaller compared to the increases registered in demand, which was supplied more and more by the imports.