Steel consumption in Latin America expected to drop

According to Latin America is expected to iron and steel association in 2015, Latin American countries have finished steel consumption fell 3.4%, steel consumption is mainly affected by the region plunged down in Brazil. According to the agency expects the Brazilian steel consumption this year is 22.3 million tons, 12.8% year-on-year decline, while Mexico steel consumption will reach 23.6 million tons, up 4.8% from a year earlier. This will be the first time in Mexico more than Brazil, become Latin America’s largest consumer of steel, and so next year is expected.

Compared with the external objective factors, the Brazilian to industrialization is more related to the country’s political and economic crisis. As the Brazilian gradually restore political stability and fiscal adjustment, large private and state-owned investment will boost the country’s steel consumption growth. Brazil’s economic growth is expected to decline 3% this year, next year is expected to decline about 2%.

But this year and Mexico’s economic outlook is very good. Mexico’s car industry is expected to grow 7.5% this year and next year is expected to remain at a high rate (6.9%), it will pull the Mexico’s steel consumption growth; Mexico’s white goods industry is expected to grow 2.6% next year, slightly less than expected growth of 3.7% this year; Mexico’s construction is expected to grow 2.7% this year, growth is expected to climb to 3.9% next year.

For Argentina, although also face political uncertainty, the country’s steel consumption is still expected to grow 3%, to 5.2 million tons. Accounted for 49% of the country’s steel consumption of the construction industry, this year is expected to remain stable growth, mainly by private investment in housing construction, and the future infrastructure investment actual growth rate is expected to more than double current levels.

Latin America is expected to iron and steel association in 2015, Latin American countries crude steel output will reach 64.57 million tons, 65.41 million tons of slightly down 1.3% year on year, which accounts for about 3.9% of global crude steel production. This year, Brazil’s crude steel production is expected to reach 34.13 million tons, increased 0.6% year-on-year; Mexico is expected to produce 18.5 million tons of crude steel, fell 2.6%. Argentina’s crude steel production is expected to be 5 million tons, 8.8% year-on-year.

Latin American countries have finished steel production this year is expected to be 53.09 million tons, 53.89 million tons of fell 1.4% from a year earlier. The plate production is expected to reduce 3% year-on-year to 26.71 million tons, long products production is expected to be stable at 26.38 million tons; Pipe production is expected to only 1.07 million tons, 1.8 million tons of tumbled 40.5% from a year earlier. In addition, the Latin American countries steel exports this year is predicted to grow 9.7% year-on-year to 15.85 million tons, 14.46 million tons last year; Steel imports estimated at 20.14 million tons, 19.72 million tons of rose 2.1% from a year earlier.