If you have been looking for good news from the Latin American steel sector this year, then please keep looking. The latest report from regional steel producers’ association Alacero shows falling domestic steel production, an almost negligible increase in consumption and an ever-widening steel trade gap.

Regional crude steel production remained static year-on-year for the period January to September inclusive, Alacero says, while finished steel output actually fell by 1%. Meanwhile, consumption grew by only 2% and is being increasingly supplied by imports. In fact finished steel imports continue to gain market share and now account for 33% of Latin American steel consumption, the association adds.

During the first three quarters of 2014, regional finished steel consumption reached 52.5 million tons, growing 2% y-o-y. Steel use in the region’s largest market Brazil fell by 5% y-on-y in the first nine months of 2014, equivalent to 1mt less consumption, Alacero says.

Against this background Latin America has seen a huge import surge in 2014 with 17.4mt of finished steel landing during the first nine months. At the same stage in 2013 imports were 14.9mt, the association confirms. Exports have fallen leaving a trade deficit of -11.9mt, 20% worse than that in 2013, Kallanish observes.

At no point in the report does Alacero mention its current trade nemesis China. Earlier in the autumn the association appealed publicly to Latin America’s regional governments to support its members’ requests for trade sanctions against growing imports of low-priced Chinese steel. The lack of acknowledgement this time means either that China imports have suddenly reduced, which is clearly not the case, or more likely, that Alacero knows that punitive trade action is imminent. Watch this space.