Latin American steel sector shows strength in 2017

Nations throughout Latin America have generally reported increased output of crude steel in 2017, according to statistics gathered by the Brussels-based World Steel Association (Worldsteel).

Mexico and Brazil, the region’s largest steelmakers, are among the nations that have led the resurgence, with Brazil’s crude steel output on pace to rise in 2017 by 9.1 percent and Mexico’s by 7.5 percent, based on statistics through the first three quarters of the year.

Figures released in late October by Worldsteel for the first nine months of the year show South America’s steel output has climbed by 8 percent compared with the same period in 2016.

Joining Brazil in increased output are Argentina, with an 8.9 percent rise, and Peru, with a 6.7 percent increase.

In North America, steelmakers have produced 3.5 percent more crude steel so far in 2017 compared with the first three quarters of 2016. However, Mexico is outpacing that average with its 7.5 percent gain, while United States production is up by 3.1 percent and Canada’s output has risen by just 1.3 percent.

Latin American nations with decreased output so far in 2017 include the cash-starved socialist states of Venezuela (down 9.4 percent) and Cuba (down by 12.6 percent).

By volume so far in 2017, Brazil is Latin America’s biggest steelmaker with nearly 25.5 million metric tons produced, followed by Mexico with nearly 15 million metric tons of output and Argentina in a distant third with nearly 3.4 million metric tons.

Argentina enjoyed a particularly strong September 2017, with its monthly output rising by 28.2 percent compared with September 2016. Brazil also made a strong showing in September 2017, adding 7.6 percent in production compared to the same month in 2016.

Mexico, meanwhile, failed to match its September 2016 output, producing 0.4 percent less steel in September 2017, while output in Venezuela dropped a massive 80.1 percent compared to September 2016.