According to a recent report by Alacero the Latin American Steel Association during the first semester of the year, finished steel consumption in Latin America (including stainless steel consumption) decreased by 12%, while regional crude steel and finished steel production fell by 11% and 7% y-o-y., respectively.
Regional steel imports represents 33% of Latin-American consumption and their participation is still increasing. In January-June 2016, Latin America produced 25.1 MT of finished steel, 7% less than January-June 2015.
During January-June 2016, finished steel consumption in the region reached 31.4 MT, down 12% vs same period 2015. During the six months of 2016, Latin America imported 10.4 MT of finished steel, down 21% vs January-June 2015. Currently, imports represent 33% of the regional finished steel consumption, which brings about disincentives to the local industry, trade frictions, and threatens jobs. In January-June 2016, the region recorded a trade deficit of 5.9 MT of finished steel. This imbalance is 35% lower than the one observed in January-June 2015.