The rapid recovery in the construction sector is expected to boost steel production and consumption in the region, according to the latest report released by the Latin American Steel Association (Alacero). However, it will take longer to return to normal life.
Steel production in the region for July this year amounted to 4.450 million tons. This is significantly higher by 20% compared to the previous month. Several blast furnaces in the region have resumed operations after being shut down for nearly four months due to the pandemic. However, compared to the same month a year earlier, the level of production during the month was still 9% lower. The three main producers in the region – Mexico, Brazil and Argentina – have registered production increases.
The trade balance of Latin America in the second quarter of this year decreased by 21% over the previous quarter. The trade balance for the 2nd quarter amounted to 12,410 million tons. In addition, imports accounted for 39% of total consumption during the quarter, up from 36% in the previous quarter. Total exports accounted for 16% of production in the first six months of the year.