Nov 7 (LTIT) –The Latin American region reported gross steel production of 4.692 million tonnes (Mt) during the month of September this year, which is the worst level witnessed since December 2016. The production declined sharply by almost 5% from 4.922 Mt during August this year. The accumulated production until September 2019 was down by 7% from the corresponding nine-month period in 2018.

One of the key reasons for the low production levels was rising iron ore cost, which in  turn affected the margins of steel companies in the region, observed the Latin American Steel Association (ALACERO).

The production of rolled steel too dropped sharply by 8% at 4.177 Mt, compared with September last year. The production touched the lowest level in almost seven months. The share of imports in Latin American steel consumption remained more or less stable at 36% until August end. The biggest declines in imprts were recorded in Costa Rica, Brazil and El Salvador. On the other hand, Mexico, Chile, Panama and Argentina recorded surge in imports.