Latin American steel association Alacero estimates that the steel industry figures will continue to worsen amid the new environment of the health crisis and its economic effects. February results of crude steel production show a 6% reduction compared to the same month of 2019, 4.8 million tonnes. At 3.4 million tonnes, rolled steel production was 2% lower than the result seen in February last year. The three countries that are the main producers reflect decreases in the accumulated (January-February): Mexico (-15%), Argentina (-7%) and Brazil (-6%). In the comparison with February of last year, Mexico (-17%) and Brazil (-1%) fell, Argentina had an increase of 8%.
Steel imports in January advanced 0.1% in relation to the same month of 2019. Exports showed a 20% cut in relation to January of last year, although they were 9% higher than the result of December 2019 (728 thousand tonnes ). This performance indicates the continuation of the effects derived from the low economic activity present since the end of 2019, which has discouraged the demand for steel, an essential material for many other industries.
Analysts and international institutions agree that 2020 will be a difficult year when the effect of the decrease in economic activity due to the general confinement due to the coronavirus and the fall in the price of oil joins. Given Latin America's high dependence on oil, commodities, and global economic performance, the region may face a complex scenario. In order to adapt production to market demand, the sector has reacted by reducing activity with blast furnaces operating at lower capacity.
Source: STEELGURU
|
