Economic activity and steel demand expected to pick up in Latin America in 2018

After 4 years of stagnation and crisis, the region has changed, thanks in part to Argentina and Brazil, better world trade conditions, a recovery in commodities and global growth.

According to the latest forecast from the International Monetary Fund, the region will grow by 1.2% this year and 1.9% in 2018. Likewise, the achievements of steel workers in the region will be in line with economic expectations, gaining positive values ​​for the first time since 2013.

A similar situation is observed in the global metallurgical industry. The latest estimates provided by the global market indicate a significant increase in global steel consumption this year (+ 7.0% versus 2016), reaching 1,622 million tonnes. This is due to strong growth in China, which in 2017 should consume 765.7 million tons, which is 12.4% more compared to 2016. The United States and Canada together increased their consumption of finished steel by 4.7% in 2017. Likewise, the European Union (28) will increase consumption by 2.5%, reaching 162.1 million tonnes.

Chinese exports to Latin America are expected to increase by 11% (8.5 million tonnes) for 2018. Thus, imports are increasingly involved in consumption in Latin America, which is largely subject to unfair trade, which seriously damages local industries. Latin American industry has responded by using tools authorized by the World Trade Organization to counter this situation, which is undermining competition and development in countries.

Latin America will consume 67.2 million tonnes in 2017 (3.7% more than in 2016). In addition, expectations for 2018 are encouraging. Major markets in the region expect steel consumption to rise, with Mexico, Brazil, Argentina and Colombia forecasting increases of 3.0%, 7.0%, 5.3% and 4.0%, respectively, in 2018. Overall, Latin America is forecasting 4.0% growth over 2017.