Steel consumption in Latin America is expected to rise by 2.8pc to 66mn mt in 2020.
According to the Latin America Steel Association (Alacero), steel consumption in the region will be driven by the economic reforms and infrastructure projects being undertaken in Brazil this year.
However, the association warned that the outlook could change depending on the impact of the spread of the COVID-19 virus, which has already caused financial and economic volatility in the region.
In 2019, Latin American steel consumption fell by 5pc to 64mn mt, due to an economic contraction in Latin American countries, particularly, Mexico, Argentina, and Brazil, which account for 87pc of the region’s consumption, Alacero indicated. The association listed the global economic slowdown, lower commodities prices, US trade disputes with its partner countries, decrease in world trade, and political uncertainties as some of the reasons for this decline.
Latin American crude steel production fell by 9pc to 60mn mt in 2019, compared with a prior year, due to lower production from Brazil, Mexico, and Argentina. Crude steel production reached 65.5mn mt in 2018.