LatAm steel imports from China grew by 5 pct in Jan-Nov 2018 YoY
General News - 2019 January 17

Exports of Chinese steel to the world, which includes rolled products (long, flat and seamless tubes), and derived steels (wire and welded pipes), decreased 10pct regarding the same period of 2017, in a total amount of 60.9 mln tons. Of these, 55.4 mln tons correspond to rolled products.

Latin America represented 11pct of the total of steel exports, increasing its participation by two points compared to Jan-Nov 2017, becoming the main destination of the Chinese Steel exports. In this way, South Korea was displaced to second place (6.5 mln tons, 39pct less than last year), while the third destination is Vietnam (6.4 mln tons, 11pct less than in 2017).

In November 2018, China shipped 730,000 tons of steel to Latin America, of which 672,000 tons corresponded to rolled steel and 58,000 tons to derivative steel. This total is 26pct higher than that registered in December and 58pct higher than November 2017.

So far this year, the region brought in 6.6 mln tons of Chinese steel, of which 6 mln tons corresponds to rolled steel and 615,000 tons to derivative steel. This total is 5pct higher than the 6.3 mln tons (5.7 mln tons of laminates and 686,000 tons of derivative steel) registered in January-November 2017.

The most alarming of these figures is the significant growth of shipments to the region registered since June. In the period June-November 2018, China's exports to the rest of the world contracted 5pct with respect to 2017, however in the case of Latin America, in the same period the region imported a total of 3.9 mln tons of Chinese steel, 860,000 tons more than in 2017, which represents an increase of 28pct.

"It is an alarming figure that legitimizes actions taken by Latin American governments to protect local industry and face the excessive increase in Chinese imports, which mostly enter unfair trade conditions." said Francisco Leal, General Director of Alacero.

Among the Latin American countries, Chile was the main destination for the Chinese steel, between laminates and derivatives, during January and November 2018, receiving 21pct of the total of the region, or 1.4 mln tons. The Central American region remained in the second place with 1.2 mln tons (17pct); Peru, with 977,000 tons (14pct), Brazil with 902,000 tons (13pct) and Colombia with 728,000 tons (11pct), completing the five most outstanding ones.

In these eleven months, the countries that increased their total imports of Chinese steel versus Jan-Nov of 2017 were Colombia (29pct), Brazil (15pct), and Chile (13pct). On the other hand, those that have seen the most decrease in their total steel imports from China in percentage terms versus Jan-Nov 2017 were Venezuela (-87pct) and Cuba (-53pct).

71pct of the total steel products, between laminates and derivatives, imported by Latin America from China during January-November 2018 were the flat products, reaching 4.7 mln tons. Among these, they stood out for their volume: sheets and coils of other alloy steels (1.4 mln tons, 30pct of flat steels imported from China); hot dipped galvanized (1.2 mln tons, 25pct) and Cold coils (700,000 tons, 15pct).

China exported 1.1 mln tons of long steel to Latin America, representing 16pct of shipments, mainly concentrated in wire rod (542,000 tons, 50pct of long steel) and bars (415,000 tons, 39pct).

The seamless tubes represented 4pct of the total imports of Chinese steel, totaling 241,000 tons. On the other hand, derived products represented 9pct of the total imports of Chinese steel that entered the region with a volume of 615,000 tons, in which 488,000 tons were welded pipes and 127,000 tons of wire.

Source: Press Release


Email this article to friend

More Headlines: Middle East Steel News, Global Steel News

Unauthorized publishing of this news without prior permission is not allowed