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Steel demand in Latin America will likely recover slowly, according to the Latin American Steel Association (Alacero).


The region’s crude steel production in June was 6.5mn mt, declining by 3.6pc from the previous month, while total steel production fell by 30pc from June 2019. Global steel production dipped by 0.3pc from May and by 6.9pc on an annual basis, Alacero’s data indicated.


The association attributed the decreased output to the COVID-19-related shutdowns last quarter. 


In Q2 2020, Latin American steel output totaled 25.7bn mt, dropping by 19pc from the same period last year. However, global production during the quarter only fell by 5.4pc because it was offset by China’s output rising by 2.2pc. International consumption rose by 6pc to 3.9bn mt in May from April.


Consumption recovered the most in Brazil, increasing by 20pc in May from the previous month. However, Mexico’s consumption fell by 14pc on a monthly basis in May, and plunged by 23pc on an annual basis. 


Francisco Leal, Alacero’s general director, said that even though demand is presently low, he sees an opportunity for Latin America to supplant Chinese steel in the US. He added that many Latin American countries have begun reopening and are stabilizing economically.

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