Alacero Forecasts 4% Growth to Latin American Steel Demand in 2018
As per Alacero estimates, the regional steel consumption is likely to total 67.2 Mt during 2017, higher by 3.7% when matched with the year before that. The market is projected to report 4% overall growth in 2018.
SEATTLE (Scrap Monster): The 58th edition of Latin American Steel Association (Alacero) Steel Conference held at the Hotel Paradisus, Cancun, Mexico from 6th-8th November, 2017 has predicted strong growth to steel consumption by major Latin American countries in 2018. The Conference, attended by around 500 delegates from across the steel industry, noted that steel demand and economic activity in the region are likely to strengthen during next year.
As per Alacero estimates, the regional steel consumption is likely to total 67.2 Mt during 2017, higher by 3.7% when matched with the year before that. The market is projected to report 4% overall growth in 2018, mainly aided by positive growth prospects in Brazil and Argentina. Brazil will report the highest year-on-year growth of 7.0% in steel consumption, followed by Argentina with 5.3%. The other countries that are likely to report notable growth in 2018 include Colombia (4.0%) and Mexico (3%).
Alacero foresees reversal from the deceleration and crisis situations that prevailed over the past four years. The recovery of global economy and revival of commodities should deliver positive growth to Latin American steel sector. However, the countries in the region must focus on deepening the ongoing economic reforms to generate dynamic steel demand in the region. Also, member countries should boost sustainable investments in the sector.
Citing the latest forecast by the International Monetary Fund (IMF), the region is expected to grow by 1.2% in 2017 and further by 1.9% in 2018. Also, industrial production is likely to average positive values for the first time since 2013. The latest estimates by the World Steel Association (worldsteel) also forecasts strong 7.0% jump in global steel consumption during 2017 as compared with the previous year.
The steel association also discussed the concerns regarding the growing volume of steel imports by regional countries from China. Currently, Latin America is the third preferred destination of Chinese steel exports after South Korea and Vietnam. The region’s steel imports from China have increased marginally during the first eight months of 2017. The Latin American countries have imported 4.4Mt of finished steel and 562,000 tons of steel-derivative products until August this year. The Chinese imports are projected to rise sharply by around 11% to touch 8.5Mt in 2018, Alacero stated.
The steel conference also announced the Board of Directors and Executive Committee for the next calendar year. Further, it announced that the Alacero-59 Conference will be held in the city of Cartagena de Indias, Colombia in November 2018.