According to Alacero, the Latin American steel association, in April this year steel consumption in Latin America decreased by 30 percent year on year, reflecting the impact of the coronavirus crisis. In April, the largest year-on-year decrease in steel consumption among Latin American countries was observed in Argentina with a drop of 83 percent.
In May, Latin America’s crude steel production decreased by 29 percent year on year, while it increased by eight percent compared to the previous month. The month-on-month increase is attributed to the higher production in Brazil.
Alacero said that imports accounted for 35 percent of total consumption in the first quarter, but they increased to a share of 41 percent in April. Meanwhile, local products accounted for 81 percent of the total consumption in Latin America in the same quarter, while local production accounted for only 74 percent of consumption in April. According to Alacero general director Francisco Leal, this situation signals that it is necessary to avoid unfair imports, such as those coming from China, and to promote domestic consumption.
The association noted that the global steel demand is expected to decline by 6.4 percent in 2020 due to the economic downturn and the generalized contraction in all countries, except for China. Meanwhile, global steel demand is expected to increase by 3.8 percent in 2021, showing a recovery.
According to the association, Latin America is having difficulty controlling the pandemic due to insufficient economic capacity to overcome the health crisis and it is facing the worst crisis in its modern history. However, Latin America is in a transition process, showing signs of economic reactivation, according to the association.