According to the Latin American Iron and Steel Association (ALACERO), between January and August of this year, steel production in Latin America contracted by 3.3% compared to the same period in 2021. For the future, the association estimated that the steel demand will grow slightly in 2023, but by 2024 it could be contracting.

Alejandro Wagner, executive director of ALACERO, indicated that it is possible that the steel demand will contract in 2024 due to lower global growth, a strong energy crisis, and a geopolitical realignment due to the war between Russia and Ukraine.

Regarding steel prices, Wagner said price drops are common reactions to falling demand after 2021, a year of strong growth. In addition, the adjustment in steel prices is related to higher prices of raw materials following pressure from China, with the resumption of supply from emerging countries.