[Ferro-Alloys.com] Latin American steel association Alacero announced that the steel consumption in Latin America in 2019 registered a 5% decrease, totaling 64 million tonnes due to worsening deindustrialization process, which has been present for decades and can impact the stability of 260,000 direct jobs in the sector. It said “The lower steel consumption in the region reflects a significant economic contraction of Latin American countries, particulary of the three main economies: Mexico, Argentina and Brazil, which account for 87% of the reduction. Among the main reasons for this situation are the global economic slowdown, lower commodities prices, US trade disputes with its partners, the descrease of world trade and political uncertainties and their effects on investment facing these countries and their neighbors in Latin America”
Comparing the consumption trend in previous years, a gradual fall is seen from 2014, when consumption reached its highest level at 72.1 million tonne.
In 2020 the initial expectation in Latin America is a 2.8% growth in steel consumption, which is expected to reach 66 million tonnes. The projection is influenced by Brazil, the main economy of the region, which has a favorable outlook for this year, due to the economic reforms that have been implemented. （Source : STEELGURU）