Steel Consumption in Latin America to Decline in 2024
Date:2024-11-20View:63Tags:stainless steel bar,"316L plate",Seamless Alloy Steel Tube
Apparent steel consumption in Latin America is projected to decrease by 2.7% year-on-year in 2024, reaching approximately 71.8 million tons, according to the regional steel producers’ association, Alacero. Imports are expected to account for 39% of the region’s steel consumption.
Per capita steel consumption for 2023 is estimated at 110 kg, marking a 3.4% year-on-year decline. Meanwhile, steel production in the region is anticipated to drop by 3.6% to 56.3 million tons by the end of the year. Notably, Brazil is forecasted to produce 61% of Latin America’s steel in 2024, achieving a 6.7% year-on-year increase, bucking the downward trend.
Rolled steel production in 2024 is expected to fall to 50.7 million tons, a 4.7% year-on-year decrease. Conversely, imports of rolled products are forecasted to grow by 3.2% to 28.8 million tons.
The industry faces challenges such as stagnant domestic demand, high production costs, and limited structural reforms, which hinder modernization and investment. Countries like Brazil and Mexico show resilience, while others relying on raw material exports remain vulnerable to global market fluctuations. Additionally, unfair trade practices, particularly from China, pose a significant threat, flooding the market with inexpensive steel and endangering regional jobs.
Adapting to a more competitive global environment, the industry is urged to innovate and diversify to maintain its competitiveness.
