In 2019, the steel consumption in Latin America decreased by 5% year on year

According to the latest statistics of Alacero, the consumption of finished steel products in Latin America in 2019 was 64.2 million tons, down 5% from 67.6 million tons in 2018. The decline in steel consumption in the region reflects the economic contraction of Latin American countries, especially the three major economies: Mexico, Argentina and Brazil. The three countries accounted for 87% of the total reduction in steel consumption in Latin America. Alacero said the main reasons for the decline in steel consumption in the region are the global economic slowdown, the fall in commodity prices, trade disputes between the United States and its partners, the shrinking world trade and political uncertainty, as well as the negative impact on Latin American countries and their neighbors in terms of investment.

Alacero also said that since 2014, the steel consumption in Latin America has been declining. At that time, the steel consumption reached a historical peak of 72.1 million tons and showed signs of industrialization. However, the deindustrialization process has been retrogressive since then. It is reported that the steel industry contributed 30% of GDP to Latin America in 2000, but it is only 15% at present. Steel consumption is a reflection of industrial vitality. All industries consume steel, including construction, automobile, machinery and equipment, packaging, agriculture, etc. The decline or slowdown in steel consumption in emerging countries is more severe because they need to import more capital goods than industrialized countries.

Alacero predicted that steel consumption in Latin America will reach 66 million tons in 2020, an increase of 2.8% year on year. The forecast is affected by Brazil, the main economy in the region, and with the implementation of economic reform measures, the outlook for Brazil's economic prospects is positive. Novel coronavirus pneumonia may also be associated with the financial and economic disturbance brought by the new crown pneumonia outbreak, which will lead to the lower economic forecast in early 2020.