The Latin American Steel Association (ALACERO), in its latest new release, stated that steel consumption recorded growth for the fourth month in a row. The Q4 2020 output too exceeded expectations.
The steel consumption during the month touched 58.9 million tons (Mt), thus hitting the highest monthly production levels since March 2017. The consumption surged higher by 10% over the prior month and by 16% when matched with the same month a year before. Meantime, the consumption during the whole year 2020 registered decline by 9.6% compared with 2019.
The steel exports during the month soared 23.6% compared with the prior month. The exports for the full year witnessed decline by 19.8%. The trade balance for the month reported the largest deficit during the year, primarily on account of surge in imports by Mexico. The full-year deficit has dropped by 10.7%.
The report stated that crude steel production reached 5.3 Mt in January this year, maintaining its growth trend. When compared with the same month a year before, the production was up by 8.7%. The rising global excess capacity continues to be a major threat to rise in domestic consumption, the association noted.
