China exported 12.8Mt of steel around the world during the first two months of 2017, according to the Latin America Steel Association (Alacero). Of that total, 1.3Mt was shipped to Latin America, up 5% on the same two-month period in 2016 while the flow of steel to the rest of the world contracted 27%.
Finished steel (12Mt) made up the bulk of China’s export volume. Derivatives accounted for just 800kt.
Latin America accounted for 9.9% of total Chinese global exports, increasing its participation by three percentage points when compared with Jan/Feb 2016 (6.9%).
While South Korea is top of China’s list for exports (2.2Mt) followed by Vietnam (1.7Mt) Latin America is in third place (1.3Mt).
Finished steel makes up the bulk of China’s exports to Latin America.
The main Latin American destinations for Chinese steel (finished and steel-derivatives) during January and February 2017 were: Chile (248kt); Central America (235kt); and Peru (194kt).
In the first two months of the year, Latin American countries that increased their imports of Chinese steel over the first two months of the year were Chile (+30%); Peru (+28%); Ecuador (+97%), Brasil (+22%), Dominican Republic (+38%) and Argentina (+228%).
Countries in Latin America that reduced their imports of Chinese steel products were: Central America (-6%); Colombia (-20%); Mexico (-46%); Costa Rica (-14%); Venezuela (-52%); and Paraguay (-32%).
Finished flat steel was the most popular Latin American import from China during Jan/Feb 2017 (831kt). In terms of volume, the most relevant products were:
• Other alloyed steel sheets and coils (293kt)
• Hot dip galvanised sheet (176kt)
• Cold rolled coil (127kt)
China exported 290kt of long steel to Latin America and 36kt of seamless pipe.
Steel-derivative products represented 9% of total imports of Chinese steel in the region, with a volume of 109kt of which welded tubes accounted for 88kt and wire 21kt.