In February 2022, crude steel production decreased by 6.8% compared to the previous month, reaching 4.8 million tons (Mt).
SANTO DOMINGO – The decrease in the supply of steel and raw materials due to the unavailability of supplies from Ukraine or Russia has caused a widespread situation of price increases worldwide, either because these new suppliers have higher costs, or because of the simple overdemand for raw materials that some suppliers have, said Alejandro Wagner, executive director of the Latin American Steel Association (Alacero), today.
“In the Dominican market, for example, most of the raw materials used to finish steel products came from Ukraine. Due to the armed conflict, the country had to find new sources of producers to guarantee supply,” Alacero in a press release.
He added that another factor hindering Latin American countries' steel purchases is inflation. He noted that governments have raised interest rates to curb it, but with the 2022 elections in countries across the region, shifts in political landscape could impact the implementation of economic reforms.
“Therefore, it is important to find a balance between demand and production, as well as cooperation between countries, to continue achieving better results. For example, there is an opportunity to modernize and renew the steel industry with new green investments in the medium and long term, because renewal, at a time of energy scarcity, would cause costs to rise,” Wagner said.
In February 2022, crude steel production decreased by 6.8% compared to the previous month, reaching 4.8 million tons (Mt).
In 2021, crude steel production increased by 15.7% compared to the previous year, reaching a total of 64.8 Mt, while rolled steel production increased by 19.5% (55.7 Mt).
The year ended with a total regional consumption of 74.8 Mt, an increase of 26.6% compared to the previous year (59.1 Mt) and 15.4% compared to 2019 (64.8 Mt).
Source: Diario Libre
