With the increase in raw materials, logistical problems, inflation and Russia’s war in Ukraine, the steel industry in Latin America expects consumption to drop 2.1% during 2022, which contrasts with the 26% increase that recorded the previous year.
Even though industries such as the automotive, construction and agricultural industries have shown resilience with the steel industry, it is in a strong recomposition of stock in the chain, which borders on maintaining “caution” in 2022, due to the global context, revealed the Latin American Steel Association (Alacero), an organization which considers Mexico to be one of the largest producers in the region. “We have not yet come out of the period of uncertainty, on the contrary, we started a year with domestic uncertainties with elections, inflation and strict monetary policies that could have an impact on industrial activity. And to all this is added the uncertainty of a global conflict,” warned Alejandro Wagner, executive director of Alacero.
In a previous analysis, the private body specified that the apparent consumption during January 2022 was 5.6 million tons, this is 8% less compared to the same month in 2021.
He recalled that crude steel production at the end of 2021 increased by 15.7% compared to the previous year, reaching a total of 64.8 million tons; while the production of rolled steel had an increase of 19.5%.