The Chilean Steel Institute (ICHA) reported a significant decline in steel consumption for the first quarter of 2024, marking the lowest levels in ten years. The report indicates that apparent steel consumption dropped to 538,000 tons, down 14.5% from the same period last year. Despite this downturn, the report notes an increase in the proportion of domestically produced steel, which now accounts for 39% of the total consumed in Chile.
Long steels, which include wire rods, reinforcing bars, and grinding bars, saw an increase of 15.7%. This rise is primarily due to the low base effect from the previous year, which had one of the lowest consumption rates in the last decade. On the other hand, flat steels, crucial for industrial, residential, and public works, experienced a steep drop of 33.6%, with the consumption of thick plates alone decreasing by 35%.
Looking forward, ICHA projects a continued decline in steel consumption by 1.5% for 2024, estimating a total of 2,353,000 tons. However, a slight recovery is anticipated for 2025, with an expected increase of 1.6% in consumption, totaling approximately 2,390,000 tons.
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