MERCOSUR: Steel Railway Material Market 2024

Steel Railway Material Market Size in MERCOSUR

After three years of growth, the MERCOSUR steel railway material market decreased by -0.7% to $X in 2022. Overall, consumption saw a perceptible decline. As a result, consumption reached the peak level of $X. From 2016 to 2022, the growth of the market failed to regain momentum.

Steel Railway Material Production in MERCOSUR

In value terms, steel railway material production totaled $X in 2022 estimated in export price. The total production indicated a mild expansion from 2012 to 2022: its value increased at an average annual rate of +1.7% over the last decade. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2022 figures, production decreased by -1.5% against 2020 indices. The pace of growth appeared the most rapid in 2016 when the production volume increased by 48% against the previous year. The level of production peaked at $X in 2020; however, from 2021 to 2022, production failed to regain momentum.

Steel Railway Material Exports

Exports in MERCOSUR

In 2022, approx. X tons of railway material of steel were exported in MERCOSUR; stabilizing at 2021 figures. Overall, exports showed a pronounced shrinkage. The most prominent rate of growth was recorded in 2017 when exports increased by 49%. Over the period under review, the exports reached the maximum at X tons in 2014; however, from 2015 to 2022, the exports failed to regain momentum.

In value terms, steel railway material exports skyrocketed to $X in 2022. In general, exports showed a relatively flat trend pattern. The growth pace was the most rapid in 2017 when exports increased by 83%. Over the period under review, the exports attained the peak figure at $X in 2013; however, from 2014 to 2022, the exports failed to regain momentum.

Exports by Country

Brazil prevails in exports structure, finishing at X tons, which was near 83% of total exports in 2022. It was distantly followed by Ecuador (X tons) and Chile (X tons), together creating a 12% share of total exports. Peru (X tons) followed a long way behind the leaders.

Exports from Brazil decreased at an average annual rate of -3.1% from 2012 to 2022. At the same time, Ecuador (+80.1%) and Peru (+5.9%) displayed positive paces of growth. Moreover, Ecuador emerged as the fastest-growing exporter exported in MERCOSUR, with a CAGR of +80.1% from 2012-2022. By contrast, Chile (-10.4%) illustrated a downward trend over the same period. From 2012 to 2022, the share of Ecuador and Peru increased by +6.4 and +1.6 percentage points, respectively.

In value terms, Brazil ($X) remains the largest steel railway material supplier in MERCOSUR, comprising 93% of total exports. The second position in the ranking was taken by Peru ($X), with a 1.9% share of total exports. It was followed by Chile, with a 1.7% share.

In Brazil, steel railway material exports remained relatively stable over the period from 2012-2022. The remaining exporting countries recorded the following average annual rates of exports growth: Peru (+2.5% per year) and Chile (-9.8% per year).

Export Prices by Country

In 2022, the export price in MERCOSUR amounted to $X per ton, with an increase of 24% against the previous year. Export price indicated a measured expansion from 2012 to 2022: its price increased at an average annual rate of +2.6% over the last decade. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2022 figures, steel railway material export price increased by +64.7% against 2018 indices. The most prominent rate of growth was recorded in 2015 an increase of 60%. Over the period under review, the export prices reached the peak figure in 2022 and is expected to retain growth in the near future.

There were significant differences in the average prices amongst the major exporting countries. In 2022, amid the top suppliers, the country with the highest price was Brazil ($X per ton), while Ecuador ($X per ton) was amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was attained by Brazil (+3.0%), while the other leaders experienced mixed trends in the export price figures.

Steel Railway Material Imports

Imports in MERCOSUR

In 2022, overseas purchases of railway material of steel decreased by -23.4% to X tons for the first time since 2019, thus ending a two-year rising trend. Over the period under review, imports continue to indicate a noticeable descent. The most prominent rate of growth was recorded in 2015 with an increase of 48%. As a result, imports attained the peak of X tons. From 2016 to 2022, the growth of imports remained at a somewhat lower figure.

In value terms, steel railway material imports expanded sharply to $X in 2022. In general, imports saw a noticeable downturn. The pace of growth appeared the most rapid in 2015 when imports increased by 34% against the previous year. As a result, imports attained the peak of $X. From 2016 to 2022, the growth of imports failed to regain momentum.

Imports by Country

Brazil prevails in imports structure, resulting at X tons, which was approx. 74% of total imports in 2022. Chile (X tons) took a 7.5% share (based on physical terms) of total imports, which put it in second place, followed by Colombia (5.9%) and Argentina (4.5%). Peru (X tons) and Ecuador (X tons) followed a long way behind the leaders.

Imports into Brazil decreased at an average annual rate of -3.6% from 2012 to 2022. At the same time, Colombia (+2.2%) displayed positive paces of growth. Moreover, Colombia emerged as the fastest-growing importer imported in MERCOSUR, with a CAGR of +2.2% from 2012-2022. Chile and Ecuador experienced a relatively flat trend pattern. By contrast, Peru (-6.0%) and Argentina (-17.6%) illustrated a downward trend over the same period. While the share of Brazil (+9.1 p.p.), Chile (+3.2 p.p.) and Colombia (+3 p.p.) increased significantly in terms of the total imports from 2012-2022, the share of Argentina (-14.5 p.p.) displayed negative dynamics. The shares of the other countries remained relatively stable throughout the analyzed period.

In value terms, Brazil ($X) constitutes the largest market for imported railway material of steel in MERCOSUR, comprising 66% of total imports. The second position in the ranking was held by Chile ($X), with a 9.4% share of total imports. It was followed by Colombia, with a 6.6% share.

From 2012 to 2022, the average annual growth rate of value in Brazil totaled -2.2%. The remaining importing countries recorded the following average annual rates of imports growth: Chile (+3.0% per year) and Colombia (+5.2% per year).

Import Prices by Country

In 2022, the import price in MERCOSUR amounted to $X per ton, jumping by 46% against the previous year. Import price indicated a slight increase from 2012 to 2022: its price increased at an average annual rate of +1.9% over the last decade. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2022 figures, steel railway material import price increased by +45.0% against 2019 indices. As a result, import price attained the peak level and is likely to continue growth in the immediate term.

Average prices varied somewhat amongst the major importing countries. In 2022, major importing countries recorded the following prices: in Chile ($X per ton) and Colombia ($X per ton), while Argentina ($X per ton) and Brazil ($X per ton) were amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was attained by Peru (+3.4%), while the other leaders experienced more modest paces of growth.

Source: IndexBox Platform