Latin America and the Caribbean: Iron And Steel Market 2024

Iron And Steel Market Size in Latin America and the Caribbean

The Latin American iron and steel market was finally on the rise to reach $X in 2021, after two years of decline. Over the period under review, consumption, however, saw a relatively flat trend pattern. Over the period under review, the market attained the maximum level at $X in 2018; however, from 2019 to 2021, consumption failed to regain momentum.

Iron And Steel Production in Latin America and the Caribbean

In value terms, iron and steel production soared to $X in 2021 estimated in export price. Over the period under review, production, however, continues to indicate a relatively flat trend pattern. The level of production peaked at $X in 2018; however, from 2019 to 2021, production stood at a somewhat lower figure.

Iron And Steel Exports

Exports in Latin America and the Caribbean

In 2021, overseas shipments of iron and steel decreased by -13.2% to X tons for the first time since 2018, thus ending a two-year rising trend. In general, exports, however, continue to indicate a relatively flat trend pattern. The growth pace was the most rapid in 2019 with an increase of 51%. Over the period under review, the exports attained the maximum at X tons in 2020, and then dropped in the following year.

In value terms, iron and steel exports skyrocketed to $X in 2021. Over the period under review, exports, however, saw slight growth. The growth pace was the most rapid in 2017 when exports increased by 46% against the previous year. Over the period under review, the exports hit record highs in 2021 and are likely to see steady growth in the immediate term.

Exports by Country

The shipments of the one major exporters of iron and steel, namely Brazil, represented more than two-thirds of total export.

Brazil experienced a relatively flat trend pattern with regard to volume of exports of iron and steel. Brazil (+3.6 p.p.) significantly strengthened its position in terms of the total exports, while the shares of the other countries remained relatively stable throughout the analyzed period.

In value terms, Brazil ($X) also remains the largest iron and steel supplier in Latin America and the Caribbean.

From 2012 to 2021, the average annual rate of growth in terms of value in Brazil amounted to +2.2%.

Export Prices by Country

In 2021, the export price in Latin America and the Caribbean amounted to $X per ton, surging by 65% against the previous year. Export price indicated mild growth from 2012 to 2021: its price increased at an average annual rate of +1.1% over the last nine years. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. As a result, the export price attained the peak level and is likely to continue growth in the immediate term.

As there is only one major export destination, the average price level is determined by prices for Brazil.

From 2012 to 2021, the rate of growth in terms of prices for Brazil amounted to +1.4% per year.

Iron And Steel Imports

Imports in Latin America and the Caribbean

In 2021, iron and steel imports in Latin America and the Caribbean skyrocketed to X tons, increasing by 36% compared with 2020 figures. Total imports indicated moderate growth from 2012 to 2021: its volume increased at an average annual rate of +4.7% over the last nine years. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2021 figures, imports increased by +39.8% against 2019 indices. Over the period under review, imports reached the maximum at X tons in 2016; however, from 2017 to 2021, imports remained at a lower figure.

In value terms, iron and steel imports soared to $X in 2021. Overall, imports continue to indicate a relatively flat trend pattern. The level of import peaked at $X in 2014; however, from 2015 to 2021, imports remained at a lower figure.

Imports by Country

In 2021, Mexico (X tons) was the key importer of iron and steel, committing 37% of total imports. Guatemala (X tons) held a 17% share (based on physical terms) of total imports, which put it in second place, followed by Argentina (14%), Peru (13%) and El Salvador (12%). The following importers - Brazil (X tons) and Ecuador (X tons) - together made up 6.1% of total imports.

Imports into Mexico increased at an average annual rate of +3.1% from 2012 to 2021. At the same time, Brazil (+55.8%), Ecuador (+48.8%), Guatemala (+42.9%), El Salvador (+38.9%), Peru (+16.2%) and Argentina (+15.3%) displayed positive paces of growth. Moreover, Brazil emerged as the fastest-growing importer imported in Latin America and the Caribbean, with a CAGR of +55.8% from 2012-2021. While the share of Guatemala (+16 p.p.), El Salvador (+11 p.p.), Argentina (+8.1 p.p.), Peru (+7.8 p.p.), Brazil (+4.1 p.p.) and Ecuador (+1.8 p.p.) increased significantly in terms of the total imports from 2012-2021, the share of Mexico (-5.3 p.p.) displayed negative dynamics.

In value terms, the largest iron and steel importing markets in Latin America and the Caribbean were Guatemala ($X), El Salvador ($X) and Argentina ($X), with a combined 63% share of total imports.

In terms of the main importing countries, Guatemala, with a CAGR of +41.9%, saw the highest rates of growth with regard to the value of imports, over the period under review, while purchases for the other leaders experienced more modest paces of growth.

Import Prices by Country

In 2021, the import price in Latin America and the Caribbean amounted to $X per ton, jumping by 26% against the previous year. Overall, the import price, however, showed a noticeable setback. Over the period under review, import prices reached the maximum at $X per ton in 2012; however, from 2013 to 2021, import prices stood at a somewhat lower figure.

There were significant differences in the average prices amongst the major importing countries. In 2021, amid the top importers, the country with the highest price was El Salvador ($X per ton), while Mexico ($X per ton) was amongst the lowest.

From 2012 to 2021, the most notable rate of growth in terms of prices was attained by El Salvador (+1.2%), while the other leaders experienced mixed trends in the import price figures.

Source: IndexBox Platform

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