Latin America steel demand to fall in 2022 -industry report

MEXICO CITY, July 13 (Reuters) - Steel demand in Latin America could dip through 2022 as the industry faces regional inflationary pressures, price hikes from the Russian invasion of Ukraine and political instability, an industry report showed.

The regional steel sector rebounded in 2021 following coronavirus-related restrictions in 2020, topping previous production levels, according to the report from the Latin American Steel Association (Alacero) shared with Reuters.

The expected drop in demand in 2022, around 2%, is due to "a cocktail of three big factors at once," Alacero President Alejandro Wagner told Reuters.

With the attack on Ukraine causing energy prices to skyrocket, as well as inflationary strains and unpredictable election cycles in Latin America, the largest steel-using industries, like construction and auto production, have shrunk so far in 2022, the report showed.