Alacero assessed the Latin American steel industry economic situation downwards after the weak results observed during the first semester of 2013. This was announced during the last Economic Committee of worldsteel.
The result is partially due to a drop of the projected regional GDP for 2013, which now is expected to grow just 2.6% (versus 3.6% projected last April). Alacero also highlighted the low industrial activity in the region. After the contraction experienced in 2012, the sector did not reach a sufficiently strong recovery in 2013 and it is expected to grow just 1.8%. The activity of steel demanding sectors was also revised downwards by 1pp, because of a weaker than expected first semester and the high volatility that characterizes all sectors of the regional economy.
The weak outlook of the regional economy and the demand sectors necessarily translated into a negative revision of the Latin American steel industry. Local production continues to be below consumption levels and the gap is being supplied by imports, which is becoming a growing concern for several Latin American countries that witness the negative impact of foreign products arrival on local employment and industrialization.
