Steel production in the region is expected to fall by 3.6% year-on-year
Apparent steel consumption in Latin America in 2024 will decline by 2.7% year-on-year – to about 71.8 million tons. This is the forecast of the regional steel producers’ association Alacero, according to Reportacero.
The share of imports in apparent steel consumption in the region is expected to reach 39%.
This year, per capita steel consumption in Latin America is expected to reach 110 kg (-3.4% y/y).
Steel production in the region is expected to fall by 3.6% year-on-year to 56.3 million tons by the end of the year. According to Alacero, in 2024, Brazil will produce 61% of steel in Latin America, achieving a 6.7% y/y increase and avoiding the overall negative trend.
In 2024, rolled steel production is likely to reach about 50.7 million tons (-4.7% y/y). At the same time, imports of rolled products, according to the association’s forecast, will increase by 3.2% year-on-year – to 28.8 million tons.
According to the association, the Latin American steel industry continues to face an uncertain economic recovery in 2024, stagnant domestic demand and high production costs. The competitiveness of the region’s steel industry is also threatened by the lack of structural reforms, which makes it difficult to attract investment and modernize infrastructure. While countries such as Brazil and Mexico are showing greater resilience, others are dependent on raw material exports, making them vulnerable to fluctuations in the global market.
In this context, the association notes that the steel industry must adapt to a more regulated and competitive global environment, looking for opportunities for diversification and innovation.
As reported earlier, the steel industry in Latin America is facing a crisis due to unfair trade practices by China, which has flooded the market with cheap steel. This situation threatens jobs and livelihoods of regional producers.
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