Alacero: April 2014: Latin America Second Most Important Destination for Chinese Steel
06/10/2014 - Latin America remains as a preferred destination for Chinese exports.
Finished steel imports from China to Latin America reached 2.5 million tons between January and April 2014, 78% more than the 1.4 million tons registered during the same period of 2013.
During the first 4 months of 2014, China exported 23.3 million tons to the world, growing 33% y-o-y, a strong increase but not as notorious as the one observed in the flow to Latin America.
The region –which accounts for 5% of the global finished steel consumption-, maintained an 11% share of the finished steel exported by China during the first 4 months of the year.
Specifically, in April 2014, Latin America received 652,035 tons of finished steel from China, becoming the second largest exports destination, only surpassed by South Korea (that received 1.1 million tons).
In this month, Chinese exports to Latin America grew 43% y-o-y. This growth is less marked than the one registered during 1Q 2014, when a 95% increase took place as the usual seasonal drop in exports (rooted in the New Year celebrations) did not occur.
Finished steel imports from China by destinations
During the first 4 months of 2014,the most important increases y-o-y of finished steel imports from China were registered in: Brazil (+193%) and Mexico (+144%). Paraguay and Argentina, while representing just 1% of the regional imports each,
more than tripled their received volumes y-o-y.
Regarding Central America market share among regional destinations, it is worth highlighting that even when these countries represent only 4%% of the Latin American consumption, they concentrate 11% of the regional total imports of finished steel. Among these imports, Chinese products account for more than half of the volume. This over dimensioned trade flow could be showing certain preference of some exporters for Central American countries –especially Panama and its free trade zone- as entry point to reach other markets in Latin America.
Latin American imports from China by type of products
Between January and April 2014, the most imported products from China among Flat Steel were:
> Sheets and coils of other alloy steel (580,417 tons, 36% of flat steel imported from China)
> Cold rolled coils (346,645 tons, 21%)
> Hot galvanized (311,485 tons, 19%).
Most imported long steel products during the first 4 months of the year were:
> Wire (363,946 tons)
> Bars (249,953 tons)
Jointly considered, they accounted for almost 90% of long product imports from China.
About Alacero
Alacero –Latin American Steel Association- is the organization that brings together the Steel Value Chain of Latin America to promote the values of regional integration, technological innovation, corporate responsibility and social and environmental sustainability. Founded in 1959, Alacero is formed by 48 companies of 25 countries, whose production –of about 70 million annual tons- represents 95% of the steel manufactured in Latin America. Alacero is a Special Consulting Organization to the United Nations and is recognized as International Non-Government Organization by the Republic of Chile, host country of Alacero´s headquarters.
During the first 4 months of 2014, China exported 23.3 million tons to the world, growing 33% y-o-y, a strong increase but not as notorious as the one observed in the flow to Latin America.
The region –which accounts for 5% of the global finished steel consumption-, maintained an 11% share of the finished steel exported by China during the first 4 months of the year.
Specifically, in April 2014, Latin America received 652,035 tons of finished steel from China, becoming the second largest exports destination, only surpassed by South Korea (that received 1.1 million tons).
In this month, Chinese exports to Latin America grew 43% y-o-y. This growth is less marked than the one registered during 1Q 2014, when a 95% increase took place as the usual seasonal drop in exports (rooted in the New Year celebrations) did not occur.
Finished steel imports from China by destinations
During the first 4 months of 2014,the most important increases y-o-y of finished steel imports from China were registered in: Brazil (+193%) and Mexico (+144%). Paraguay and Argentina, while representing just 1% of the regional imports each,
more than tripled their received volumes y-o-y.
Regarding Central America market share among regional destinations, it is worth highlighting that even when these countries represent only 4%% of the Latin American consumption, they concentrate 11% of the regional total imports of finished steel. Among these imports, Chinese products account for more than half of the volume. This over dimensioned trade flow could be showing certain preference of some exporters for Central American countries –especially Panama and its free trade zone- as entry point to reach other markets in Latin America.
Latin American imports from China by type of products
Between January and April 2014, the most imported products from China among Flat Steel were:
> Sheets and coils of other alloy steel (580,417 tons, 36% of flat steel imported from China)
> Cold rolled coils (346,645 tons, 21%)
> Hot galvanized (311,485 tons, 19%).
Most imported long steel products during the first 4 months of the year were:
> Wire (363,946 tons)
> Bars (249,953 tons)
Jointly considered, they accounted for almost 90% of long product imports from China.
About Alacero
Alacero –Latin American Steel Association- is the organization that brings together the Steel Value Chain of Latin America to promote the values of regional integration, technological innovation, corporate responsibility and social and environmental sustainability. Founded in 1959, Alacero is formed by 48 companies of 25 countries, whose production –of about 70 million annual tons- represents 95% of the steel manufactured in Latin America. Alacero is a Special Consulting Organization to the United Nations and is recognized as International Non-Government Organization by the Republic of Chile, host country of Alacero´s headquarters.
